When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Thursday, April 16, 2015

Hold My Money, Please, I'll Even Pay You!

Hold my money, please, I'll even pay you?

A currency crisis is on deck, but few see it coming.--Mike "Mish" Shedlock

Until this past week, no country had ever sold 10-year debt that gives investors a yield of below 0%. And no country had ever issued a 100-year bond denominated in euros. But in the latest stark sign of how easy the era of easy money has become, Switzerland on Wednesday sold 10-year bonds that investors are actually paying to hold, while Mexico lined up a rare transaction to borrow euros it promised to repay a century from now—at a yield of 4.2%... Reserve prepares to raise interest rates, the European Central Bank is forcefully driving them down. The Swiss National Bank, eager to keep its currency from soaring too far above its eurozone neighbors’, has itself shoved interest rates below zero. Read more at: Mish's Global Economic Trend Analysis: Milestones in Bond Insanity: Negative 10-Year Yield on Swiss Bonds, Mexico Sell 100-Year Bonds Denominated in Euros; Are 1000-Year Bonds Next?

The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects