The Plebian

Pretty Economic Pictures for the Illiterate Masses

Negative Interest Rates: Another Economic Record Set

with 2 comments

For the first time in history, the interest rates on 3 month T-Bills is negative.  Additionally the 4-week T-Bill is at 0.0000.  This is astounding.  People are actually paying money to park their cash in the safety of the federal government. Does this not seem like an oxy-moron to anyone?  You know the economy must be in the shitter when investing world’s largest debt carrier seems like the safe bet.

Expect this demand to be short-lived.  Investors are padding their for portfolios for year-end and will likely jump back into stocks once everyone realizes that market bottoming is in process.

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Written by eastwood24

December 10, 2008 at 4:37 pm

2 Responses

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  1. The entire concept of the Federal Government being a safe place has always boggled my mind. They are the last people I would trust with my money! Money Markets much better to me!

    tulip42

    December 10, 2008 at 5:32 pm

  2. Just crazy – I’m moving my assets out of the country through Peter Schiff’s Euro Pacific Capital. I can’t imagine how bad things are about to get

    scientificleader

    December 10, 2008 at 7:41 pm


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