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.
The euthansia of the rentier. Bring it on.
US 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.