Tuesday, December 2, 2014

Quote of the Day: “The reason rates should be higher have been in place for a long time..."

December 2, 2014
Treasuries Drop for Second Day Amid Record Corporate Debt Sales

The reason rates should be higher have been in place for a long time, and the Treasury market hasn’t seen a significant back-up,” Lyngen said. “And every time we do have a significant back-up, overseas investors come in and buy the market.”

What reason has been in place for a long time? Seriously. I'd love to know.

It sure as heck isn't the deposit glut.

November 27, 2014
Banks Continue to Disbelieve the Rising Interest Rate Story

Commercial banks now have more than $32,000 in deposits for every man, woman, and child in this country. Why would they need to raise interest rates when so much money is being deposited at low interest rates? Does anyone really believe banks are running a charity service?


Stagflationary Mark said...

Apologies for accidentally posting this before I had any of the content filled in.

You should have seen me frantically updating this post in an effort to contain the subprime posting damage. ;)

Troy said...

Money in the bank is useless, or more precisely, orthogonal to an actual wealth position.

Not that it's a bad thing, tho, LOL

Stagflationary Mark said...


Money in the bank is useless...

As I see it, the economy is a video game and the rich are looking to win it.

The one with the most points wins!

Seriously. That's how I see it. I can't imagine any other reason for a $10 billionaire to strive to be a $20 billionaire.

I don't tend to be all that competitive playing games that I have no chance of winning. I'm therefore comfortable spending some of my points in retirement and hopefully timing it so well that I have very few points when I die. Hopefully! ;)