0% interest rates
Posted by Nicholas Gruen on Friday, December 12, 2008
Warren Buffett emailed this note to the directors of his company, Berkshire Hathaway on Tuesday after he heard that the U.S. Treasury sold $32 billion in 4-week bills at a yield of 0%:
This should be bullish for Berkshire. With great foresight, I long ago entered the mattress business in a big way through our furniture operation. Now mattresses have become fully competitive as a place to put your money, and sales will soon take off.
This entry was posted on Friday, December 12th, 2008 at 2:57 PM and filed under Economics and public policy.
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The euthansia of the rentier. Bring it on.
Posted on 13-Dec-08 at 11:49 am | PermalinkUS Treasury bonds recently went to a negative return for the first time in history. Investors are willing to pay a premium just to get most of their money back in three months.
Posted on 14-Dec-08 at 8:42 am | Permalink