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To: robnhood who wrote (10690)11/8/1998 8:09:00 PM
From: IceShark  Read Replies (1) | Respond to of 86076
 
Russell, While it is old news, it is pretty astounding that the rate would go neg, albeit by a pretty small fraction.

About 10 years ago, I had an attempted ream out occur in a deposition by saying that very long term, historically, the risk free rate averaged a bit over a quarter percent, and had actually gone negative a few times. I wish that dep testimony was going on now. -vbg-

No one seems to be able to comprehend why you would agree to negative interest. I have a few reasons for why simple people would accept negative interest rates - like the money could get stolen. What is today's reason?

Regards, Ice



To: robnhood who wrote (10690)11/8/1998 9:40:00 PM
From: Joseph G.  Read Replies (1) | Respond to of 86076
 
carry trade unwinding = sell other currencies for Y, now what to do with that Y, that's the question ... OTOH, that's short time deposits, they're just waiting for the Y to peak out to sell it again for something else, like Euros.