Negative Bond Yields

**crusher** · Jul 28, 2015, 07:37

"Some cash will have to burn whether we like it or not" Hope its not mine.

**errolanderson** · Jul 28, 2015, 07:51

crusher . . . that was quite the final statement in this slideshow that cash has to burn, but so utterly true (IMO) due of near-sighted central bank policies with no end-game insight.

**ado089** · Jul 28, 2015, 09:57

The sad thing is the world could have taken it's lumps in 07/08, seen a heavy correction which would have allowed a re-balance and restructure favoring the efficient and innovative and we would be well on our way to a sustainable recovery all be it at a lower valuation. We're still going to get there but now instead of shitty asset values we'll have shitty asset values and a mountain of debt to go with it.

**errolanderson** · Jul 28, 2015, 10:10

ado agree . . . had central bankers not been involved, global markets would likely already be in-recovery after the crash of 2007-08. Writeoffs and bloodletting would have run-its-course. But central bank policy has just kicked-the-can making the debt mess worse; an increasing danger to markets(IMO).

Which begs a question; what's the role of the central banker??

**ado089** · Jul 28, 2015, 10:13

The stimulus and much less of it should have occurred after the dust had settled to help with the reboot, not before preventing it.

**bucket** · Jul 28, 2015, 10:31

If they had invested in infrastructure that this country desperately needs we would all be better off.

Instead they advertise.

People can run China down on their spending but they created something.

Canada has built nothing lately.

Piece meal gazebos doesn't cut it.

**errolanderson** · Jul 28, 2015, 10:43

Central bankers do nothing to generate economy. But their policies can create income inequality within society.

They can do only two things . . .
1. Adjust their lending rates.
2. Print money

**tweety** · Jul 28, 2015, 13:21

Ado, pretty sure we'll be saying that in 2021 that in 2015 it should have happened. Its like the ones controlling the money have gotten so good at it there is no end to the downward spiral.

**ado089** · Jul 28, 2015, 13:33

Likely. The sad thing is that global demographics will start turning around in 2021 and we'll still be saddled with this mess.

Negative Bond Yields