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To: pater tenebrarum who wrote (63573)1/31/2001 1:59:42 PM
From: Box-By-The-Riviera™  Read Replies (1) | Respond to of 436258
 
no no no no no... at zero we start to pay him interest.



To: pater tenebrarum who wrote (63573)1/31/2001 2:00:14 PM
From: Lucretius  Read Replies (1) | Respond to of 436258
 
meltup on the rate cut? or collapse? its one or the other....



To: pater tenebrarum who wrote (63573)1/31/2001 2:01:53 PM
From: Lucretius  Read Replies (2) | Respond to of 436258
 
has GE bottomed?



To: pater tenebrarum who wrote (63573)1/31/2001 2:24:08 PM
From: dpl  Read Replies (1) | Respond to of 436258
 
Heinz,were did you see this? Do you have a link?

David



To: pater tenebrarum who wrote (63573)1/31/2001 2:47:29 PM
From: Mark Adams  Read Replies (1) | Respond to of 436258
 
From what I read of liquidity traps, if rates go too low, people won't buy bonds as they will anticipate future higher rates resulting in capital loss. There is a point were the cost of holding cash (gold?) drops close enough to zero that people will prefer that.

If this is correct, then there is an imaginary floor under interest rates.