This is fine, this is ok.
Honk Honk
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>lock your money for 30 fucking years
>get back less than you put in
wow this is retarded boomer shit right there
Where does a retail investor like myself buy these negative yielding assets?
its not locked in mate, you can take out bits of it
price numbers are going to start getting bigger now that people are getting paid to increase the money supply
you REALLY think the bond buying market is populated by tards ?
What would be the point then?
how do i take out a german loan that pays me
I think its populated by shared managed money funds that are required to hold X% of bonds, regardless of yield.
It's probably still a better investment than crypto.
yields dont matter to investors of german bonds, they just expect that they will further increase in value
is this what that means?
it surely can't be
This is your economy on Jews.
NOT. EVEN. ONCE.
People literally pay the German government money to store their wealth. How can the rest of the world even compare?
These will have a better return in 30 years than link
This is how magnets work.
never gonna make it. DYOR
i am burger, pls explain as if i voted for shillary or cheetoman
wow, Year percents in minus :o
>government fucks up the economy
>then charges a fee to keep you safe
Keynesian and post Keynesian economics is really a trip. Truly clown world.
Negative fixed interest rate. They pay you to take out a loan. What‘s there to explain?
how do i take one out as a burger who doesn't read kraut?
You throw away your passport and get on a ship, which will almost immediatly result in a german citizenship being handed to you. For the rest you just need an online translator.
C O P E
O
P
E
for being a business & finance board you guys sure are retarded. One possible explanation is that people are buying these as a way to hedge yourself against higher losses (through inflation, recession or other factors) while the second most likely scenario is that the people buying these bonds will be able to push it to the ECB for full rpice when the QE starts to gear up in the next recession cycle. In that case, they won't have any loss at all.
Not to mention the fact that their sale flopped anyway, managed to sell 800 million worth of bonds out of 2 billion planned
fake and gay, effective rate still 2.75%
dis ninja know
Can you explain to me how an asset with negative yield will become more valuable over time?
you're a fucking retard
yields can change and you can trade your bonds, their yields (prices) can fluctuate and thus they're speculating they'll make a profit you fucking mongoloid
They're betting holding any other asset would lose more money than the bond (ie they believe nothing is going to gain value in 30) years. It's damage limitation in essence
it‘s not. get someone to translate the footer for you.
it is literally the greater fool theory. someone else will buy the bags for even a worse yield. maybe it is expected that interest rates will go even lower.
>implying the german treasury will still be around in 30 years
post a better link then ahmed
m.check24.de
But bonds don't hedge against inflation. If you're worried about literally everything else going even more negative, why wouldn't you just buy commodities/real estate/stacks of safehaven currency?
oy vey, gotta pay for a good cause goys
majority of people, including me, don't get a loan with negative interest rate. it's just bait
This. People who buy bonds now are just betting on the ECB buying them later on. They're literally praying the ECB will buy their bags.
>business & finance
you me shitcoin
change it to 1k and take their front page offer. are you a brainlet?
*mean
>One possible explanation is that people are buying these as a way to hedge yourself against higher losses (through inflation, recession or other factors)
pretty much
>losing money
>hedging
makes no sense, imagine not buying btc in accumulation phase, boomers will be wiped out
>pay someone money to try and make sure your money still exists in 30 years
how fucked are we?
How big of a loan can I get?
I earn 780€ after everything is deducted.
I don't have to pay rent etc.
Positiv Schufa.
Could it be a way to store a huge chunk of your wealth away, so you don't get fucked in taxes? (Genuine question, I don't know how their tax law works).
"O sorry mr shekelberg, I only have £2m, rather than £10m" (since 8m is locked up in bonds). If the tax would be more than they lose from the negative bond, overall profit, or damage limitation as another user said.
who the fuck buys negative bonds?
playing roulette you can keep 98% and it's more funny
you re actually right lol
>commodities/real estate/stacks of safehaven currency
because there are still risks involved of that currency depreciating (or devaluating by a commie gov)
why should someone buy somenthing that goes negative?
>boomer shit
You mean millennials pensions they have to pay into and have no control over.
You're doing this under assumption that the negative yield is going to be countered by inflation.
>yields can change
yields are locked in for the term of the loan you clueless brainlet. only newly issued t bills can have a different rate.
yeah you can refinance your shit with freshly issued bonds, but I also think he didn't mean that
honestly negative yield bonds means everything is gravitating to paygo pension system as it entirely fucks with the savings of any one individual. It' easier for the government when they only have to shuffle new gen's money to the old gen. Coupled with negative natality we're heading into one dystopian hellhole
>"Why are people buying at negative yields? It is mainly in expectation that you're going to be able to sell to someone at a higher price later on," said Andrea Iannelli, investment director, fixed income at Fidelity International. "Whatever the yield you have to assume you're going to make more on the capital gain than lose on the yield."
HAHAHAHAHAHAHAAHAHAHHAHAAHAHAHAHAHHAHAHAHAHAHA
CENTRALIZED SCAM
yes, complete morons who think this debt based economy actually works fine on long term
expect gold and bitcoin to do a 999999% on bondniggers
if by crypto you mean btc, you are so fucking wrong
please answer me if you mean btc because then I will put you in the screencap for the next ATH
you mean deflation?
that's some sort of (((scam))) anyway. Since it's voiced in media so much, one can suspect they don;t want anyone else to buy/
In the other hand...still betting on germanistan to uptrend, that's a yikes
BONDCONEEEEEEECT
Based and corecuckpilled
>Honk Honk
they're buying negative bonds because the alternatives are riskier.
>Keynesian and post Keynesian economics is really a trip.
Its not economics and its about hype people realise keyes was a conman whos 'economics' wound up with the UK calling in the IMF in the 1970s. The Austrian school, adam smith etc are economics. Keynes is bullshit that justifies leftist idiots being idiots. Anyone who saw him with his stupid sheet of plywood with pipes on it (which he thought was brilliant) explaining how money supply as water should instantly know he was a retard and a bullshit artist in emperors new cloths. I'd pretty sure there was a pathe news reel or equivalent of it to. The man was a smokescreen for the fact Britian became a debtor nation not out of choice but circumstance. He's been the poor excuse for every borrow and spend halfwit ever since
>One possible explanation is that people are buying these as a way to hedge yourself against higher losses
>Not to mention the fact that their sale flopped anyway
So which is it smartarse, pick one and one only. Oh hang on the second is reality whereas the first is invalidated by reality and you just typed all those words for nothing
>you mean deflation?
Its not deflation as then holding cash would be great and its not
>One possible explanation is that people are buying these as a way to hedge yourself against higher losses
Then they could just hold cash for 0.0-0.2%
I think they really intend to find a greater fool
At one point we will hear how based Germany is and how their economy is rocketing
Then ..dumpit.exe
Here's my economic analysis of kenes. Lets say you give a stupid illiterate moron sitting on a rock a million dollars and he owes interest on it. Will he use it to e.g open a factory that employs people producing goods effectively ad is well managed and winds up worth easily more than the million plus interest or will he e.g spend it on hookers and blow and a macmansion and a car and be unable to service the loan and loose everything and at best wind up on a rock again same as he was. You decide. If the latter you just realised that Keynesian economics is fucked. If the first.....you think civil servants Don't operate at the level of gross stupidity, self serving interest and incompetence if given large sums of money? REALLY?
But surely holding bonds does not make sense in the times of hyperinflation does it?
Say they get 990k back from their 1M ..and by the time printers stop, those 990k will be enough to buy a loaf of bread.
>their economy is rocketing
Its not. The entire Germany economy exists to service state employee pension funds. Their entire public finance is built around this priority and nothing else.
Well its not deflation (hold cash, depost accounts are fucking worthless these days) and its not inflation either (there is none). We have stagflation but maybe we need a new word. My word is poontang.
Yeah and Vechain didn't partner with BMW.
Ffs man, I say we will be hearing it in the news and retailfags will get dumped on.
>Vechain
The eternal chink scamcoin
We need a Regan and a Thatcher back and a big big hard dose of Austrian economics
>hedge yourself against higher losses through inflation
>by getting less currency units than when you started
The absolute fucking STATE
Make a million euros on link. It buys a bacon sandwich and a glass of milk but that's better than leaving it in the bank where you get charged nightly and after two weeks it will all be gone.
Fuck dude, made me chuckle
If you think about it its a way of actually reducing money supply. Its vaporising money supply. Is it that foolish?
this may seem a dumb question but
why not just keep your money in a bank and get 0% interest?
or are they banking on negative interest rates such that you have to pay your bank to keep your money?
why would the price of these bonds go up?
is buying these bonds a bet against inflation? Surely there will be a lot of inflation between now and when the bonds mature (30 years)? Especially in a negative interest rate environment
can someone explain to a brainlet PLEASE
>because there are still risks involved of that currency depreciating (or devaluating by a commie gov)
how do you devalue real estate? Or commodities?
>why not just keep your money in a bank and get 0% interest?or are they banking on negative interest rates such that you have to pay your bank to keep your money?
well if they pay 0% interest and charge fees then you are already in that scenario.
Good post
If the negative yield is less than literally gambling, you're the winner in the long run even though you still have less than what you started with. And since most people will turn their head away once they see "negative yield", there'll be low volume with tight bid/ask so the price will be very stable. For someone with Jeff Bezos tier money, it'd be an excellent way to hedge long term if you're worried about a recession, although bitcoin would be better.
Assets like gold and real estate and market funds get crushed in a real deflation. See Japans property market collapse.
sorry about the typos. Every generation gets to learn Keynes was a charlatan
The 1976 IMF Crisis was a financial crisis in the United Kingdom in 1976 which forced James Callaghan's Labour Party government to borrow $3.9 billion ($17.2 billion in 2018) from the International Monetary Fund (IMF), at the time the largest loan ever to have been requested from the IMF.
Milton Friedman was an American economist who received the 1976 Nobel Memorial Prize in Economic Sciences. By basically pointing out that keynes ideas had fucked the UK. Yet to my fucking horror they resurrected the monster in the 07/08/09 collapse and before you know it you have that unbelievable commie prick Thomas Piketty and everyone calling Keynes a great mind again. Only tragedy could ensure.
WHY NOT JUST BUY THE CURRENCY
>well if they pay 0% interest and charge fees then you are already in that scenario.
it was already like that for a couple of years now, you use a cc to cover your banking and insurance cost with cashback.
You'll laugh I put my money in high grade antique weapons. I already hold a bed of art, gold, silver, self managed pension funds with no fees , property, some dividend stocks and yes, link. The best of the lot by far was the antique weapons. by up to 1000% over the last 5 years
> how do you devalue real estate?
Move a tribe of vibrant citizens nearby (habbeding in Minnesomalia)
>WHY NOT JUST BUY THE CURRENCY
Dollars the only game in town there. Sterlings fucked, the euro is 0%. The yuan is shitting itself and basically unholdable. The yen continues to be crumbling pile of shit, the swiss franc belongs in the 1970s and is just a peg to the euro
The Swiss National Bank held its interest on sight deposits at -0.75 percent ... Offered Rate) for three-month interbank loans in Swiss francs
June 13 2019
Holding anything in anything other than dollar or dollar traded assets is killing your money
shitskin migrants literally bankrupting the world in the space of 10 years
Maine is the most egregious example of this. Literally choosing the whitest state in the Union because whiteness is now offensive and needs to be eradicated. What we really need is some good old fashioned (((diversity))) aka ethnic replacement
>shitskin migrants literally bankrupting the world in the space of 10 years
Look. You need to think The origins of the financial crisis lie in the US government forcing lenders to give mortgages to financially toxic individuals. These mortgages collected together nearly broke the US financial markets. These mortgages were not to immigrants but to the low tier nativist US population. And here we are ten years later. A few countries collapsed that are on the borders of civilisation like north Africa, Russia, latin America etc the oes that collapsed into arabs killing each other resulted in the smarter arabs fleeing to paces like Germany (which had originally brought in turks after ww2 because Germany needed cheap labor). However literally noting you have learned in pol is relevant to what is happening financially. Sorry. What did the harm was lending useless fiscally dumb people money and giving useless proven incompetent companies and banks bailout money. Both individuals and banks and companies that were shit should have been let go to the wall. That's capitalism and the markets in action, the shit dies, the stars live and prosper. You need the cull for the herd to stay healthy. Yeah it would have been like the 1930s but all we did was kick the can down the road. We still have useless fiscally stupid people able to borrow money and bailed out banks and companies that are still being run incompetently. I'd just like to add that Roosevelt's new deal was actually a fucking disaster and what history books teach about him is a lie. Its a miracle he died when he did and Truman arrived and saved the west before he completely destroyed it. Bad news, there is no secret jewish conspiracy running the world either. Its more complicated, chaotic and random than that. Until the market is fed its pain it will not give genuine prosperity
Stop shitting the thread up please. I'm sure there are people in pol who will love to talk to you about that but its fucking irrelevant here. Plus that stinks of poorfag brain. The confederacy PAID to import slaves. Now you are bitching when not alone are they free but there is no shipping cost on them either
>The confederacy PAID to import slaves. Now you are bitching when not alone are they free but there is no shipping cost on them either
Not just that but they have to feed themselves. A great time to hire modern cottonpickers (who fulfil amazon orders in warehouses operated like little machines with legs).
May I propose poonflation? Honk honk
sorry but you're the dumb dumb
what shitcoin are you peddling, pajeet?
>buy high
>sell for slightly less
truly we live in a boomer society