Why does Anyone Buy Negative Interest Bonds?

[william the wie]

This is something I cannot make sense out of. So, have at it.

 

[HenryBHough]

One thing:

Stupidity.

That's why negative interest bonds are all the rage with liberals.

 

[Dekster]

The two biggest reasons are that they have to hold them because of government regulations or because they think the economy is turning south and it is a safe place to put money to mitigate loss.

 

[boedicca]

The two biggest reasons are that they have to hold them because of government regulations or because they think the economy is turning south and it is a safe place to put money to mitigate loss.

And if cash is outlawed....as is happening in Europe.

 

[Dekster]

The two biggest reasons are that they have to hold them because of government regulations or because they think the economy is turning south and it is a safe place to put money to mitigate loss.

And if cash is outlawed....as is happening in Europe.

It was really more done in Japan and parts of Europe to try to keep people from parking their money in banks for very long. Banks park their money in central banks, so negative interest tries to shake the money back into circulation. Both places risk stagflation.

 

[justinacolmena]

Why invest in negative interest bonds?

It's other people's money.

Sometimes trust or endowment funds or the like *must* be invested according to some institutional mission or mandate despite what would seem to us as ordinary common-sense rules of sanity.

 

[Cellblock2429]

This is something I cannot make sense out of. So, have at it.

/----/
Why Would Anyone Buy Negative Interest Rate Bonds? -- The Motley Fool
...you're asking why do people do this, because they are doing it. And to try to answer the question briefly here, as we close, the answer is that traditionally, bonds are kind of an offset to the stock market. The reason some people think you should be diversified into bonds is because when stocks go down, bonds often don't. And so if you are a large asset manager, and you're trying to park lots of cash different ways and keep yourself safe and balanced, then you have appreciated having something that protects you in the one out of three years where the stock market loses value.

BTW Swiss bank accounts pay negative interest too. It’s the cost of hiding money.

 

[william the wie]

The two biggest reasons are that they have to hold them because of government regulations or because they think the economy is turning south and it is a safe place to put money to mitigate loss.

And if cash is outlawed....as is happening in Europe.

It was really more done in Japan and parts of Europe to try to keep people from parking their money in banks for very long. Banks park their money in central banks, so negative interest tries to shake the money back into circulation. Both places risk stagflation.

Japan is already in stagnation and parts of Europe as well. A decent case can be made that parts of China are too. If Trump can get most of his agenda enacted the US may missout on this problem.

 

[william the wie]

This is something I cannot make sense out of. So, have at it.

/----/
Why Would Anyone Buy Negative Interest Rate Bonds? -- The Motley Fool
...you're asking why do people do this, because they are doing it. And to try to answer the question briefly here, as we close, the answer is that traditionally, bonds are kind of an offset to the stock market. The reason some people think you should be diversified into bonds is because when stocks go down, bonds often don't. And so if you are a large asset manager, and you're trying to park lots of cash different ways and keep yourself safe and balanced, then you have appreciated having something that protects you in the one out of three years where the stock market loses value.

I can see how low yield bond substitutes such as REITs and Utilities would work but since many DRIPs of these issues often provide discounts on direct and reinvested dividend purchases that looks like it provides much more down side protection than negative interest rate bonds.

 

[Dekster]

The two biggest reasons are that they have to hold them because of government regulations or because they think the economy is turning south and it is a safe place to put money to mitigate loss.

And if cash is outlawed....as is happening in Europe.

It was really more done in Japan and parts of Europe to try to keep people from parking their money in banks for very long. Banks park their money in central banks, so negative interest tries to shake the money back into circulation. Both places risk stagflation.

Japan is already in stagnation and parts of Europe as well. A decent case can be made that parts of China are too. If Trump can get most of his agenda enacted the US may missout on this problem.

I support stagnation. In fact, I support purposeful, managed degrowth. America consumes too much. The pursuit of more dollars to pay for too much is ruining people's psyche.

 

[Dekster]

The two biggest reasons are that they have to hold them because of government regulations or because they think the economy is turning south and it is a safe place to put money to mitigate loss.

And if cash is outlawed....as is happening in Europe.

It was really more done in Japan and parts of Europe to try to keep people from parking their money in banks for very long. Banks park their money in central banks, so negative interest tries to shake the money back into circulation. Both places risk stagflation.

Japan is already in stagnation and parts of Europe as well. A decent case can be made that parts of China are too. If Trump can get most of his agenda enacted the US may missout on this problem.

I support stagnation. In fact, I support purposeful, managed degrowth. America consumes too much. The pursuit of more dollars to pay for too much is ruining people's psyche.

/—-/ You want stagnation? Move to Cuba and leave us the fu*k alone to prosper. You idiot

I want degrowth. American "prosperity" is an illusion created by a hyper-inflated stock market. As for Cuba, no luck. Trump has greatly restricted people's ability to go there

 

[Dekster]

It was really more done in Japan and parts of Europe to try to keep people from parking their money in banks for very long. Banks park their money in central banks, so negative interest tries to shake the money back into circulation. Both places risk stagflation.

Japan is already in stagnation and parts of Europe as well. A decent case can be made that parts of China are too. If Trump can get most of his agenda enacted the US may missout on this problem.

I support stagnation. In fact, I support purposeful, managed degrowth. America consumes too much. The pursuit of more dollars to pay for too much is ruining people's psyche.

/—-/ You want stagnation? Move to Cuba and leave us the fu*k alone to prosper. You idiot

I want degrowth. American "prosperity" is an illusion created by a hyper-inflated stock market. As for Cuba, no luck. Trump has greatly restricted people's ability to go there

/——-/ You can get to Cubs via Mexico. If you hurry you can be there in time to get work harvesting the sugar cane crops, Viva la Revolution.

Can't. Trump built a wall and trapped me here. Convincing people it was to keep others out when it was really to keep us in was brilliant on his part. We are now all prisoners of der Führer

 

[Crepitus]

This is something I cannot make sense out of. So, have at it.

The only reason I could see would be of the economy was going into recession and they were losing less than other things, in other words being relatively safe.

 

[percysunshine]

Who cares what it is?

If I can buy it today, and then sell it tomorrow for a profit...meh

 

[boedicca]

The two biggest reasons are that they have to hold them because of government regulations or because they think the economy is turning south and it is a safe place to put money to mitigate loss.

And if cash is outlawed....as is happening in Europe.

It was really more done in Japan and parts of Europe to try to keep people from parking their money in banks for very long. Banks park their money in central banks, so negative interest tries to shake the money back into circulation. Both places risk stagflation.

Japan is already in stagnation and parts of Europe as well. A decent case can be made that parts of China are too. If Trump can get most of his agenda enacted the US may missout on this problem.

I support stagnation. In fact, I support purposeful, managed degrowth. America consumes too much. The pursuit of more dollars to pay for too much is ruining people's psyche.

Irony is ironic. You couldn't post here on the interwebs without America's pursuit of innovation and growth. If you want to live a Bronze Age lifestyle, do it yourself and leave the rest of us alone.

 

[boedicca]

And if cash is outlawed....as is happening in Europe.

It was really more done in Japan and parts of Europe to try to keep people from parking their money in banks for very long. Banks park their money in central banks, so negative interest tries to shake the money back into circulation. Both places risk stagflation.

Japan is already in stagnation and parts of Europe as well. A decent case can be made that parts of China are too. If Trump can get most of his agenda enacted the US may missout on this problem.

I support stagnation. In fact, I support purposeful, managed degrowth. America consumes too much. The pursuit of more dollars to pay for too much is ruining people's psyche.

/—-/ You want stagnation? Move to Cuba and leave us the fu*k alone to prosper. You idiot

I want degrowth. American "prosperity" is an illusion created by a hyper-inflated stock market. As for Cuba, no luck. Trump has greatly restricted people's ability to go there

How unimaginative of you. I'm pretty sure you could just walk across the Venezuelan border and live in the Utopia you desire.

 

[Dekster]

The two biggest reasons are that they have to hold them because of government regulations or because they think the economy is turning south and it is a safe place to put money to mitigate loss.

And if cash is outlawed....as is happening in Europe.

It was really more done in Japan and parts of Europe to try to keep people from parking their money in banks for very long. Banks park their money in central banks, so negative interest tries to shake the money back into circulation. Both places risk stagflation.

Japan is already in stagnation and parts of Europe as well. A decent case can be made that parts of China are too. If Trump can get most of his agenda enacted the US may missout on this problem.

I support stagnation. In fact, I support purposeful, managed degrowth. America consumes too much. The pursuit of more dollars to pay for too much is ruining people's psyche.

Irony is ironic. You couldn't post here on the interwebs without America's pursuit of innovation and growth. If you want to live a Bronze Age lifestyle, do it yourself and leave the rest of us alone.

Irony is ironic. That we have an internet just creates even more opportunity for managed degrowth. Look at how Amazon is destroying bricks and mortar stores. Telemarketers and tech support come to you from India. Phone sex operators laid the groundwork for people working from home. DO that on a larger scale, and we can build fewer highways.

 

[Dekster]

It was really more done in Japan and parts of Europe to try to keep people from parking their money in banks for very long. Banks park their money in central banks, so negative interest tries to shake the money back into circulation. Both places risk stagflation.

Japan is already in stagnation and parts of Europe as well. A decent case can be made that parts of China are too. If Trump can get most of his agenda enacted the US may missout on this problem.

I support stagnation. In fact, I support purposeful, managed degrowth. America consumes too much. The pursuit of more dollars to pay for too much is ruining people's psyche.

/—-/ You want stagnation? Move to Cuba and leave us the fu*k alone to prosper. You idiot

I want degrowth. American "prosperity" is an illusion created by a hyper-inflated stock market. As for Cuba, no luck. Trump has greatly restricted people's ability to go there

How unimaginative of you. I'm pretty sure you could just walk across the Venezuelan border and live in the Utopia you desire.

Venezuela is not next door to Virginia.

 

[boedicca]

And if cash is outlawed....as is happening in Europe.

It was really more done in Japan and parts of Europe to try to keep people from parking their money in banks for very long. Banks park their money in central banks, so negative interest tries to shake the money back into circulation. Both places risk stagflation.

Japan is already in stagnation and parts of Europe as well. A decent case can be made that parts of China are too. If Trump can get most of his agenda enacted the US may missout on this problem.

I support stagnation. In fact, I support purposeful, managed degrowth. America consumes too much. The pursuit of more dollars to pay for too much is ruining people's psyche.

Irony is ironic. You couldn't post here on the interwebs without America's pursuit of innovation and growth. If you want to live a Bronze Age lifestyle, do it yourself and leave the rest of us alone.

Irony is ironic. That we have an internet just creates even more opportunity for managed degrowth. Look at how Amazon is destroying bricks and mortar stores. Telemarketers and tech support come to you from India. Phone sex operators laid the groundwork for people working from home. DO that on a larger scale, and we can build fewer highways.

Oh blah blah blah so sleepy....zzzzz.

Nobody is forcing you to use the internet, and yet, Here You Are.

 

[boedicca]

Japan is already in stagnation and parts of Europe as well. A decent case can be made that parts of China are too. If Trump can get most of his agenda enacted the US may missout on this problem.

I support stagnation. In fact, I support purposeful, managed degrowth. America consumes too much. The pursuit of more dollars to pay for too much is ruining people's psyche.

/—-/ You want stagnation? Move to Cuba and leave us the fu*k alone to prosper. You idiot

I want degrowth. American "prosperity" is an illusion created by a hyper-inflated stock market. As for Cuba, no luck. Trump has greatly restricted people's ability to go there

How unimaginative of you. I'm pretty sure you could just walk across the Venezuelan border and live in the Utopia you desire.

Venezuela is not next door to Virginia.

You can easily fly to Colombia and then cross the border. Jeebus, how do you survive with such a lack of initiative?