THREAD: "What if this is as good as it gets?" (/)
@nglinsman @amlivemon @DiMartinoBooth @chigrl @dlacalle_IA @bondstrategist
@nglinsman @amlivemon @DiMartinoBooth @chigrl @dlacalle_IA @bondstrategist
That's a movie quote in a quite likeable, witty, and at times heart rending movie with Jack Nickolson: (/)
But the quote is eminently applicable to the US treasury 10 Year rate shown above: indeed, what if the multiyear trade wind brought by the Central Bank Eudoxus is about to blow against the ship?(/)
In part, that is more than understandable, since contrary to what Apostasy says in various venues, there is indeed a Zero Lower Bound: there is no <expletive> way where it's possible to rationally part with possession of money and be inclined to PAY for that.(/)
When it happens, it's not because some exotic branch of math, statistics or economic theory broke new ground: rather, laws have been twisted or ignored in order to make it happen by force.(/)
Now the question is, what's the optimal path for the common good? shall we have rates slide up, stay constantly low as in Japan, or engage in collective folly and try to push all rates in negative territory?
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