An opportunity we can’t afford to miss

This is going to be the most boring sentence I have ever included in a column, but it might also be the most important: The real yield on Treasury debt has, in recent months, turned negative. Sound impenetrably dull? Sure. But here's what it means: free money!

Let's start by defining some terms: The "yield" on Treasury debt is how much the government pays to borrow money. The "real yield" is how much it pays to borrow money after accounting for inflation. When the "real yield" turns negative, it means the government isn't paying to borrow money anymore. Rather, the situation has flipped, and the government is getting paid to keep money safe.

Read full article >>

Eli Saslow 30 Aug, 2011

--
Source: http://feeds.washingtonpost.com/click.phdo?i=375b75134b066a12ffab5bb9a414964f
~
Manage subscription | Powered by rssforward.com