Saturday, September 20, 2008

The Debts of the Spenders: Negative Interest on Treasuries

Negative interest rates on treasuries mean the bond buyer is receiving less than what he originally paid for! While this may be a short term solution to fears about the economic system it is not a viable longer term solution. Who would want to buy an investment like that?

Eventually buyers would migrate out of the country towards more attractive foreign locales.

http://ichart.finance.yahoo.com/z?s=%5EIRX&t=1y&q=c&l=on&z=l&p=s&a=v&p=s

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