The ultimate shrewdness is found not in the balance sheet, but in the qualitative excellence of the business.
- Manlobbi
Halls of Shrewd'm / US Policy
No. of Recommendations: 0
Anyone think it is on horizon?
Normally I would not lend money to people with bad family names who bathe in bad culture -- the result is evident in your national balance sheet.
But as someone who 'needs' a safe 4% nominal return, nibbling at a 5%'er for 10 years, if inflation is to be 3%....I dunno I might have to wear a disguise and hold my nose and do some of that.
No. of Recommendations: 1
Only possible AFTER the Spankee CRASH--AND you buy at the bottom.
THAT is how you get higher returns with a Horse and Dove economy.
No. of Recommendations: 0
5% interest rates are normal.
5% interest rates are excellent for conservative savers and retirees.
What's the problem?
No. of Recommendations: 0
5% interest rates are normal.
Only to those who BORROW money. Then they PAY maximum 5%.
Investors want 20+%. Ask ANY high-wealth investment fund.
For YOU? You get paid 3% on deposits.
Remember: 6% used to be "normal".
No. of Recommendations: 1
The discussion was about the interest rate on the 10 year treasury bond.
5% was considered very normal at one time.
No. of Recommendations: 6
5% interest rates are normal...
Only to those who BORROW money. Then they PAY maximum 5%.
Investors want 20+%. Ask ANY high-wealth investment fund.
It's always good to remember that the global weighted average cost to borrow money is, axiomatically, equal to the global weighted average interest earned on money. In general if you're not doing that well either borrowing or lending, it's likely because of cuts going to middlemen or (if borrowing) because you're less creditworthy than the global weighted average.
Admittedly a lot of borrowers are governments and they tend to get a better deal on average, meaning others get a worse deal borrowing on average, but the global identity holds true. And there is no middleman spread if you lend to a government.
Jim
