wow, treasury bills yielding negative return for first time in history

[JS80]

http://www.bloomberg.com/apps/...KEI6F4&refer=worldwide

cliffs: If you invested $1 million in three-month bills at today?s negative discount rate of 0.01 percent, for a price of 100.002556, at maturity you would receive the par value for a loss of $25.56.


This is the next asset bubble. I'd be looking to short treasuries (TLT) or go long short treasury ETF (TBT) in the near future. I remember studying about this happening to Japanese Treasuries in college...never thought it would ever happen to US.

 

[StageLeft]

Where am I supposed to put my damn money?

 

[JS80]

Originally posted by: Skoorb
Where am I supposed to put my damn money?

Ironically, your mattress will yield higher return than treasury bills.

 

[TallBill]

Originally posted by: Skoorb
Where am I supposed to put my damn money?

Right now? Stocks, duh..

 

[Fern]

I saw that, it's hard to figure.

Best I can come up with is that it's foreign money flowing into US $'s and it's probably easier to put in T-Bills than exchange into and hold regular currency.

Wierdness

Fern

Edit: Maybe somebody's betting on some serious deflation?

 

[JS80]

Originally posted by: Fern
I saw that, it's hard to figure.

Best I can come up with is that it's foreign money flowing into US $'s and it's probably easier to put in T-Bills than exchange into and hold regular currency.

Wierdness

Fern

Edit: Maybe somebody's betting on some serious deflation?

I wouldn't say betting, but certainly that's what the price is implying the "market" thinks will happen.

 

[dmcowen674]

Originally posted by: JS80
http://www.bloomberg.com/apps/...KEI6F4&refer=worldwide

cliffs: If you invested $1 million in three-month bills at today?s negative discount rate of 0.01 percent, for a price of 100.002556, at maturity you would receive the par value for a loss of $25.56.


This is the next asset bubble. I'd be looking to short treasuries (TLT) or go long short treasury ETF (TBT) in the near future. I remember studying about this happening to Japanese Treasuries in college...never thought it would ever happen to US.

You have got to be proud of what Bush and your buds have accomplished.

 

[blackangst1]

Originally posted by: TallBill

Originally posted by: Skoorb
Where am I supposed to put my damn money?

Right now? Stocks, duh..

:thumbsup:

 

[blackangst1]

Originally posted by: dmcowen674

Originally posted by: JS80
http://www.bloomberg.com/apps/...KEI6F4&refer=worldwide

cliffs: If you invested $1 million in three-month bills at today?s negative discount rate of 0.01 percent, for a price of 100.002556, at maturity you would receive the par value for a loss of $25.56.


This is the next asset bubble. I'd be looking to short treasuries (TLT) or go long short treasury ETF (TBT) in the near future. I remember studying about this happening to Japanese Treasuries in college...never thought it would ever happen to US.

You have got to be proud of what Bush and your buds have accomplished.

About as proud as I am of the markets reaction to Obama's election...same thing ya know

 

[0marTheZealot]

Originally posted by: dmcowen674

Originally posted by: JS80
http://www.bloomberg.com/apps/...KEI6F4&refer=worldwide

cliffs: If you invested $1 million in three-month bills at today?s negative discount rate of 0.01 percent, for a price of 100.002556, at maturity you would receive the par value for a loss of $25.56.


This is the next asset bubble. I'd be looking to short treasuries (TLT) or go long short treasury ETF (TBT) in the near future. I remember studying about this happening to Japanese Treasuries in college...never thought it would ever happen to US.

You have got to be proud of what Bush and your buds have accomplished.

come on dude, we get it, you hate Bush. So do a ton of people. Say something that doesn't relate to him for one post man, just one.

 

[alchemize]

Originally posted by: 0marTheZealot

Originally posted by: dmcowen674

Originally posted by: JS80
http://www.bloomberg.com/apps/...KEI6F4&refer=worldwide

cliffs: If you invested $1 million in three-month bills at today?s negative discount rate of 0.01 percent, for a price of 100.002556, at maturity you would receive the par value for a loss of $25.56.


This is the next asset bubble. I'd be looking to short treasuries (TLT) or go long short treasury ETF (TBT) in the near future. I remember studying about this happening to Japanese Treasuries in college...never thought it would ever happen to US.

You have got to be proud of what Bush and your buds have accomplished.

come on dude, we get it, you hate Bush. So do a ton of people. Say something that doesn't relate to him for one post man, just one.

Why do you hate America?

 

[Jhhnn]

It's part and parcel of a general flight to liquidity, and one way to keep your money safe.

Deflation? Highly likely, although how bad remains anybody's guess. Bernanke and the FRB seem strongly committed to avoiding it as much as possible, but we'll just have to wait and see...

 

[dmcowen674]

Originally posted by: 0marTheZealot

Originally posted by: dmcowen674
You have got to be proud of what Bush and your buds have accomplished.

come on dude, we get it, you hate Bush. So do a ton of people.

Say something that doesn't relate to him for one post man, just one.

I do everyday.

I say something that relates to Obama and the Democrats making the Bush and the Republcan supporters want to leave the country on a daily basis.

When just one actually leaves it will be my personal "Mission Accomplished".

 

[alchemize]

Originally posted by: dmcowen674

Originally posted by: 0marTheZealot

Originally posted by: dmcowen674
You have got to be proud of what Bush and your buds have accomplished.

come on dude, we get it, you hate Bush. So do a ton of people.

Say something that doesn't relate to him for one post man, just one.

I do everyday.

I say something that relates to Obama and the Democrats making the Bush and the Republcan supporters want to leave the country on a daily basis.

When just one actually leaves it will be my personal "Mission Accomplished".

Congrats, you've found another way to fail!

 

[dmcowen674]

Originally posted by: alchemize

Originally posted by: dmcowen674

Originally posted by: 0marTheZealot

Originally posted by: dmcowen674
You have got to be proud of what Bush and your buds have accomplished.

come on dude, we get it, you hate Bush. So do a ton of people.

Say something that doesn't relate to him for one post man, just one.

I do everyday.

I say something that relates to Obama and the Democrats making the Bush and the Republcan supporters want to leave the country on a daily basis.

When just one actually leaves it will be my personal "Mission Accomplished".

Congrats, you've found another way to fail!

Guess we'll see about that the next 4 years as the screws turn on you radical righties.

 

[TallBill]

Originally posted by: dmcowen674

Originally posted by: 0marTheZealot

Originally posted by: dmcowen674
You have got to be proud of what Bush and your buds have accomplished.

come on dude, we get it, you hate Bush. So do a ton of people.

Say something that doesn't relate to him for one post man, just one.

I do everyday.

I say something that relates to Obama and the Democrats making the Bush and the Republcan supporters want to leave the country on a daily basis.

When just one actually leaves it will be my personal "Mission Accomplished".

If anyone has felt anything but confusion, let alone the urge to leave the country, as a result of any of your posts since your legal troubles then they need serious mental help.

I can't think of any poster in Anandtech history that has been so consistently wrong and idiotic. You realize that the only reason that the moderators keep you around is so that we can all read your posts and crack up laughing right?

 

[dmcowen674]

Originally posted by: TallBill
You realize that the only reason that the moderators keep you around is so that we can all read your posts and crack up laughing right?

Like you guys are laughing at Obama's policies even before he takes office?

The more you guys laugh and/or get pissed off the better.

 

[TallBill]

Originally posted by: dmcowen674

Originally posted by: TallBill
You realize that the only reason that the moderators keep you around is so that we can all read your posts and crack up laughing right?

Like you guys are laughing at Obama's policies even before he takes office?

The more you guys laugh and/or get pissed off the better.

If anyone has felt anything but confusion, let alone the urge to leave the country, as a result of any of your posts since your legal troubles then they need serious mental help.

I can't think of any poster in Anandtech history that has been so consistently wrong and idiotic. You realize that the only reason that the moderators keep you around is so that we can all read your posts and crack up laughing right?

 

[dmcowen674]

Originally posted by: TallBill

Originally posted by: dmcowen674

Originally posted by: TallBill
You realize that the only reason that the moderators keep you around is so that we can all read your posts and crack up laughing right?

Like you guys are laughing at Obama's policies even before he takes office?

The more you guys laugh and/or get pissed off the better.

If anyone has felt anything but confusion, let alone the urge to leave the country, as a result of any of your posts since your legal troubles then they need serious mental help.

I can't think of any poster in Anandtech history that has been so consistently wrong and idiotic. You realize that the only reason that the moderators keep you around is so that we can all read your posts and crack up laughing right?

Awesome You're so pissed you're repeating and babbling Awesome :thumbsup:

 

[Svnla]

I read the story today and scratch my head. Why would anyone doesn't want to get any interest? At least spread your $$ around in 30 days CDs.

Let see, $250K insurance limit per bank, over 3000 banks with FDIC insurance = at least $750 million

 

[LegendKiller]

Originally posted by: Svnla
I read the story today and scratch my head. Why would anyone doesn't want to get any interest? At least spread your $$ around in 30 days CDs.

Let see, $250K limit per bank, over 3000 banks with FDIC insurance = at least $750 million

Safety, ease of management. Do you want to manage 3000 bank accounts? Most portfolio managers don't easier.

 

[Svnla]

Originally posted by: LegendKiller

Originally posted by: Svnla
I read the story today and scratch my head. Why would anyone doesn't want to get any interest? At least spread your $$ around in 30 days CDs.

Let see, $250K limit per bank, over 3000 banks with FDIC insurance = at least $750 million

Safety, ease of management. Do you want to manage 3000 bank accounts? Most portfolio managers don't easier.

Safety? FDIC is as good as Tbill the last time I checked (within the amount limit)

Ease of management? 1 account vs. 3000? 1 is better but for half of the interest of $750 million, I would more than glad to handle all those accounts. Let see $750 million @ 1% CDs = $7.5 million. I would love to take half of that. Filthy rich people, PM me now!!!! 😀

<----- tongue in cheek, I know big time $$ managers won't able to do so

 

[LegendKiller]

Originally posted by: Svnla

Originally posted by: LegendKiller

Originally posted by: Svnla
I read the story today and scratch my head. Why would anyone doesn't want to get any interest? At least spread your $$ around in 30 days CDs.

Let see, $250K limit per bank, over 3000 banks with FDIC insurance = at least $750 million

Safety, ease of management. Do you want to manage 3000 bank accounts? Most portfolio managers don't easier.

Safety? FDIC is as good as Tbill the last time I checked (within the amount limit)

Ease of management? 1 account vs. 3000? 1 is better but for half of the interest of $750 million, I would more than glad to handle all those accounts. Let see $750 million @ 1% CDs = $7.5 million. I would love to take half of that. Filthy rich people, PM me now!!!! 😀

It's a combination of safety. Do you have any idea what managing 3,000 accounts would entail? How much time, effort, money, would be wrapped up in investing that? I am in a wealth management role and it's not a simple thing to manage and I don't have anywhere near that.

For example, you actually have to fill out 3,000 Patriot Act forms. Then, you have to wire 3,000 separate funds, of which, that movement of money would probably require registration and more compliance information. Just moving the money through Fed Wires would cost 24,000 (fed wire costs $8). That's not even including what happens if you want to move it out? Then that's another 24,000. Then there's account maintenance fees. Not to mention tracking the money.

I know you're kinda having fun with the idea, but it's pretty damn complex.

 

[child of wonder]

Originally posted by: Skoorb
Where am I supposed to put my damn money?

Gold, silver, etc.

Value of the dollar will drop again as inflation takes hold from these massive bailouts.

 

[LegendKiller]

Originally posted by: child of wonder

Originally posted by: Skoorb
Where am I supposed to put my damn money?

Gold, silver, etc.

Value of the dollar will drop again as inflation takes hold from these massive bailouts.

Because the market would never have priced that in already. Everybody knows that won't eventually happen.