By Larry Chiang
Good luck out there if you’re studying Deep Underground Chinese Knowledge [d.u.c.k.]
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Brad Lemley (@BradCLemley) |
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@NickSzabo4 Bloomberg’s blithely asserting the “non-weirdness” of something that has not happened in 5,000 years is a pretty unique take: businessinsider.com/5000-year-hist…
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Nick Szabo 🔑 (@NickSzabo4) |
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It doesn’t cost any more to store bits or paper in Europe now than it did when interest rates were positive. The “storage costs” metaphor as a justification for negative interest rates is a whopping falsehood.
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gluckq (@gluckq2) |
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@BradCLemley @NickSzabo4 Reading on negative yields, it’s easy to distinguish the real jurnos from the jackals trying to benefit from robbing the orphans & widows. The real jurnos will mention the coercion against pension funds, etc.; whereas the jackals will try to convince that negative yields are OK.
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Brad Lemley (@BradCLemley) |
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@gluckq2 @NickSzabo4 Yes, okay for the big boys who do cross-currency basis swaps, but murderous for, say, pension funds with rules forcing them into these instruments. Negative rates exploit “rule inertia” – the fact that rule makers never imagined such rates would exist.
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Nick Szabo 🔑 (@NickSzabo4) |
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@BradCLemley @gluckq2 They also expose how heavily and disastrously regulated the fixed-income market is. It often departs very far from the ideal free market of economics classrooms, with prices often “signalling” more the consequences of regulations than natural supply and demand.
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