Inflation-protected [five year]securities sold at negative yields for the first time ever on Monday as traders anticipate that the Federal Reserve will start a new round of asset purchases.
I don't quite get it, people are betting that nothing happens for five years except the Fed magically increases everyone's cash balances. I doubt it, better off to e mail me and I can find some great venture opportunities among the companies in the transportation revolution.
1 comment:
Inflation, generally, is good for debtors and bad for creditors. As a thought experiment, a debtor benefits from inflation (and more so with hyperinflation) because while the loan is taken out with today's dollars, it is repaid in the future when, because of inflation, the currency is worth less.
betting on inflation
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