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  1. #1
    Affiliate Manager Howard Gottlieb's Avatar
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    Unbelievable
    We are in unchartered financial territory:

    Treasury Bills Trade at Negative Rates as Demand for Investor Haven Surges

    http://www.bloomberg.com/apps/news?p...6F4&refer=home
    I would rather live my life as if there is a God and die
    to find out there isn't, than live my life as if there
    isn't and die to find out there is.

  2. #2
    Full Member Greywolf's Avatar
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    From the article "If you invested $1 million in three-month bills at today’s negative discount rate of 0.01 percent, for a price of 100.002556, at maturity you would receive the par value for a loss of $25.56."

    I don't get it. Why would you park money where you are guaranteed a negative return. Maybe people are just scared.

    I believe the smart investors are buying stocks like crazy. In a couple of years they'll look like geniuses.

    All of my money is in equities. I'll let you know how it works out.

  3. #3
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    Right Grey, buy away, "look" like a genius
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  4. #4
    Full Member Greywolf's Avatar
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    either a genius or a fool, and I've already done fool. remember Worldcom?

  5. #5
    ABW Ambassador 2busy's Avatar
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    Why would you park money where you are guaranteed a negative return
    Because it is a known negative. They know how much value it will have at maturity unlike other currently available options.

  6. #6
    Resident Genius and Staunch Capitalist Leader's Avatar
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    I'd stick it in the mattress rather than have a for-sure negative return. Zero change in value beats losing money.
    There is no knowledge that is not power. ~Hemingway

  7. #7
    ABW Ambassador simcat's Avatar
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    umm, maybe buy a really BIG safety deposit box...

  8. #8
    Resident Genius and Staunch Capitalist Leader's Avatar
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    Oh yeah, it did say $1MM...

    Well...um...

    Not sure, but with that kind of money on hand, I would probably buy up some cheap foreclosed homes in an area that's sure (as sure as "sure" can get, anyway) to recover. There's still a risk of loss with such investments, but there's also a great possibility of gain--and I just can't see putting it somewhere where loss is *inevitable.*
    There is no knowledge that is not power. ~Hemingway

  9. #9
    Full Member Greywolf's Avatar
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    Quote Originally Posted by 2busy
    Because it is a known negative. They know how much value it will have at maturity unlike other currently available options.
    you can still get over 3% on a CD, and they are FDIC insured. Also, even a bank savings rate is better than zero. Mines a whopping .8%.

  10. #10
    Full Member Greywolf's Avatar
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    Quote Originally Posted by Leader
    I'd stick it in the mattress rather than have a for-sure negative return. Zero change in value beats losing money.
    don't forget the inflation factor. Of course if we suffer deflation, then your mattress is looking pretty good (somehow that doesn't sound right).

  11. #11
    ABW Ambassador 2busy's Avatar
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    FDIC insured Bank CDs are not available to foreign investors. T-Bill auctions don't attract the same market as local bank CDs.

  12. #12
    Moderator MichaelColey's Avatar
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    Quote Originally Posted by simcat
    umm, maybe buy a really BIG safety deposit box...
    It really wouldn't take much space. $1 million is just 100 bundles of one hundred $100 bills, which would fit in a typical briefcase and weigh about 22 pounds.
    Michael Coley
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  13. #13
    Analytics Dude Kevin's Avatar
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    It really wouldn't take much space. $1 million is just 100 bundles of one hundred $100 bills, which would fit in a typical briefcase and weigh about 22 pounds.
    He has them delivered from Shareasale regularly, so.....
    Kevin Webster
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  14. #14
    Moderator MichaelColey's Avatar
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    LOL! Don't I wish. Not quite there yet.

    If I ever have a $1 million month, I think I'll ask Brian to send it in cash in a briefcase.
    Michael Coley
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    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  15. #15
    ABW Ambassador MeeMaw's Avatar
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    I get more than 3% on my money market checking account. Anyone want to give me a million I would be glad to give them 2%.

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