Monday, November 9, 2009

I-Bond Real Rates Triple In November!

That's right! They've gone from 0.1% to a whopping 0.3%! Just look at that massive spike in the chart. Wonderful!

Who said I can't be optimistic when conditions warrant it?

I've already bought I-Bonds this year when they were offered at 0.7% (using the rates as of November of 2008 and good for six months thereafter). It has been my hope that I-Bond rates would be at least somewhat tolerable by November of next year. So far, so good.

I'm trying my hardest not to mention terms like "illusionary lipstick", "pig", and/or "dead cat bounce" though. There's just no need for that sort of negativity around here now that the economy has rebounded so robustly.

I'm also trying not to mention that I-Bond rates have perhaps spiked unsustainably high and might be due for a massive correction. I mean really, tripling to a whopping 0.3%? The higher the rates go the farther they can fall. Right?

I won't mention these things though, because that might get investors to think that the same thing might happen to riskier assets at some point. "Crash" and "mall traffic" are words I'm specifically not mentioning by name.

Disclaimer: Commentary may have contained sarcasm. Past performance of I-Bond rates may not be indicative of future I-Bond rates. Illusionary lipstick, pigs, dead cat bouncing, crashes, and mall traffic mental images are offered simply as opinions and should not be construed as investment advice.


Stagflationary Mark said...

I clearly didn't mention "mall traffic" in my post, but that doesn't mean I can't mention it in the comments! ;)

"Nov 06, 2009 (Datamonitor via COMTEX) -- BGP | Quote | Chart | News | PowerRating -- US-based specialty book retailer Borders Group has announced that as part of its ongoing strategy to right-size its Waldenbooks Specialty Retail segment and emerge with a smaller mall chain in fiscal 2010, it will close approximately 200 mall stores in January 2010, leaving up to 130 mall-based locations open."

America is being right-sized. What a great euphemism! See? I can still remain optimisitc even in the face of impending doom.

watchtower said...


What if I've been 'left-sized'?
As in "My a** has been 'left' in the dust during this economic downturn."
This 'right-sized' movement sounds discriminatory.
You'll be hearing from my lawyer J. Noble Daggett about this!

Stagflationary Mark said...


I'm sorry. No left-sized left.

Would you settle for a capsized movement? Just "rollover" the remaing 401k into riskier assets and pray for more government "bailouts". ;)

watchtower said...


Sorry for having to bring in my lawyer J. Noble Daggett but I knew you'd see it my way once I did : )

Stagflationary Mark said...


Whew! I'm glad we could resolve this peacefully.

I didn't want to rely on my lawyer to shake things up a bit. My lawyer even scares me!

Don't get too cocky my boy. No matter how good you are don't ever let them see you coming. That's the gaffe my friend. You gotta keep yourself small. Innocuous. Be the little guy. You know, the nerd... the leper... shit-kickin' surfer. Look at me. - John Milton, The Devil's Advocate