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Post by unlawflcombatnt on Sept 26, 2011 11:54:06 GMT -6
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Post by mdub on Sept 28, 2011 2:27:49 GMT -6
I wonder how high the interest rates would be if we didn't have a printing press.
Who in their right mind would want to buy 10 year bonds that pay far less than inflation. Maybe investors are looking at it as the "lesser of all evils."
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Post by unlawflcombatnt on Sept 28, 2011 11:41:41 GMT -6
Maybe investors are looking at it as the "lesser of all evils." I think that's it exactly. Better to lose a little from inflation than a lot from an outright market crash. It also indicates that investors still trust the Government to pay back their debts.
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Post by mdub on Sept 29, 2011 1:23:36 GMT -6
Yes, but the only way to pay back the debt is thru inflation, as Greenspan said. I guess investors don't mind getting paid back in devalued dollars.
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