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Jim Grant: Living With Negative Interest Rates

FYI: “I have been involved in the investment business for over 50 years,” reader Dave Goebel of Damascus, Ore., led off his letter in last week’s Mailbag, “and I can make absolutely no sense out of what is going on in today’s markets. Having lived through the years of double-digit inflation and interest rates in the early 1980s, it makes no sense to me how we can have over $16 trillion in worldwide bonds with negative yields, and 2) how the Federal Reserve can be concerned with pushing inflation up to 2%.”

That makes two of us. A 50-year man myself, I wonder what impulse leads the same human brain that spurned a 15% bond yield in 1981 to chase a subzero bond yield in 2019.
Regards,
Ted
https://www.marketwatch.com/articles/living-with-negative-intrerest-rates-51567187649?mod=investing

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