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The Madness of Crowds

Never again, lessons must be learned...but of course they never are

There is now an extraordinary $12 Trillion of negative-yielding government debt, $1TR of which was added last month alone. “Investors / lenders” now pay for the privilege of loaning governments,’ and mainly bankrupt governments at that, money across the yield curve out to 50-years duration, with the only certainty being that if held to maturity they receive a guaranteed loss. History will surely place this period as an additional chapter within Charles Mackay's 1841 classic "Extraordinary Popular Delusions and the Madness of Crowds."

It’s been a heck of a ride to ever lower interest rates since the 1980 high of 20% for the Federal Reserve Funds Rate shown above, along with the 2-year Treasury bond can continue HERE

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