Thursday, December 3, 2020

Tag: The Economy Should Have a Real Yield: CNBS

The Economy Should Have a Real Yield: CNBS

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by Karl Denninger, Market Ticker:

So they said at 7:41 on 10/11.

Ok.  I happen to agree by the way because, as was noted in one of the first few pages of LeverageNobody, in a free market, ever lends money at a loss on purpose.

This doesn’t mean people don’t do dumb things; they do — all the time.

But nobody holds a bonfire on their back porch with $100 bills.

So what is the nominal short-term (e.g. 13 week T-bill) rate of interest required today to have a positive real rate?