Comments on: Fed up with Fed http://www.scholarsandrogues.com/2009/01/27/fed-up-with-fed/ Think. It ain't illegal yet... Thu, 09 Feb 2012 21:48:39 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Rich Herschlag http://www.scholarsandrogues.com/2009/01/27/fed-up-with-fed/comment-page-1/#comment-61363 Rich Herschlag Thu, 29 Jan 2009 22:35:16 +0000 http://www.scholarsandrogues.com/?p=7210#comment-61363 Jeff is right technically, but I never actually said the government determined the rate. The Fed made an offering at zero-zero, and it was gobbled up. They had to turn away about four times as much. Though not all the news is bad, since I can't remember the last time this happened with T-bills, I thought it was worth a few lighthearted observations. Ironically, and on a serious note, with money all dressed up and no place to go, and more money still being injected, we might be looking at real inflation one day not so far from now. But that's for another article. --Rich Jeff is right technically, but I never actually said the government determined the rate. The Fed made an offering at zero-zero, and it was gobbled up. They had to turn away about four times as much. Though not all the news is bad, since I can’t remember the last time this happened with T-bills, I thought it was worth a few lighthearted observations. Ironically, and on a serious note, with money all dressed up and no place to go, and more money still being injected, we might be looking at real inflation one day not so far from now. But that’s for another article.

–Rich

]]> By: Lex http://www.scholarsandrogues.com/2009/01/27/fed-up-with-fed/comment-page-1/#comment-61261 Lex Wed, 28 Jan 2009 00:38:47 +0000 http://www.scholarsandrogues.com/?p=7210#comment-61261 Well, at least December's inflation rate was only 0.09, but taking the 08 average of 3.85% would mean that you're losing money. In other words, i hope that there's a little change left over. I did hear on the way home that the Fed is cutting short-term rates to 0.0%. Everything must go, 90 days same as cash. Well, at least December’s inflation rate was only 0.09, but taking the 08 average of 3.85% would mean that you’re losing money.

In other words, i hope that there’s a little change left over.

I did hear on the way home that the Fed is cutting short-term rates to 0.0%. Everything must go, 90 days same as cash.

]]> By: jeff watson http://www.scholarsandrogues.com/2009/01/27/fed-up-with-fed/comment-page-1/#comment-61257 jeff watson Tue, 27 Jan 2009 23:55:17 +0000 http://www.scholarsandrogues.com/?p=7210#comment-61257 Laura, I did find it very funny, but in the interest of accuracy had to include a few facts. I don't mean to be a fuddy duddy, but I guess that's the way I am. Jeff Laura,

I did find it very funny, but in the interest of accuracy had to include a few facts. I don’t mean to be a fuddy duddy, but I guess that’s the way I am.

Jeff

]]> By: Lara Amber http://www.scholarsandrogues.com/2009/01/27/fed-up-with-fed/comment-page-1/#comment-61240 Lara Amber Tue, 27 Jan 2009 19:35:20 +0000 http://www.scholarsandrogues.com/?p=7210#comment-61240 Yes, but Jeff, it's still a funny post. Yes, but Jeff, it’s still a funny post.

]]> By: jeff watson http://www.scholarsandrogues.com/2009/01/27/fed-up-with-fed/comment-page-1/#comment-61239 jeff watson Tue, 27 Jan 2009 18:52:40 +0000 http://www.scholarsandrogues.com/?p=7210#comment-61239 The rates of T-Bills are determined at auction, not by the government. With the exception of the Yen, the dollar hasn't been sinking as of late compared to other currencies. Lower rates on T=Bills and T-Bonds and Notes means that the instruments increrase in value because of the inverse correlation betweein price and interest rate. People who had their 401-K's in bond funds did very well this past year, like 20-30% appreciation. As far as paying the Fed to hold our money, for generations the Swiss banks had a negative interest rate. Jeff The rates of T-Bills are determined at auction, not by the government.

With the exception of the Yen, the dollar hasn’t been sinking as of late compared to other currencies.

Lower rates on T=Bills and T-Bonds and Notes means that the instruments increrase in value because of the inverse correlation betweein price and interest rate. People who had their 401-K’s in bond funds did very well this past year, like 20-30% appreciation.

As far as paying the Fed to hold our money, for generations the Swiss banks had a negative interest rate.

Jeff

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