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Nickelless
Administrator
USA
5580 Posts |
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Neckro
1000+ Penny Miser Member
Saudi Arabia
2080 Posts |
Posted - 12/09/2008 : 15:25:25
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| Does these bills factor in COLA? |
Trolling is an art. |
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Nickelless
Administrator
USA
5580 Posts |
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Delawhere Jack
1000+ Penny Miser Member
USA
1680 Posts |
 Posted - 12/09/2008 : 21:38:57
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Maybe I'm just dense.....but why would anyone buy T bills with 0% return? Why not just hold cash in hand? What possible benefit could they offer?
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"Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty." Thomas Jefferson
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Nickelless
Administrator
USA
5580 Posts |
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swusc
Penny Hoarding Member
USA
553 Posts |
Posted - 12/10/2008 : 11:21:27
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quote:
Originally posted by Delawhere Jack
Maybe I'm just dense.....but why would anyone buy T bills with 0% return? Why not just hold cash in hand? What possible benefit could they offer?
It is the safest place to park cash. Banks fail. You have government backing on all cash invested in treasury bonds/bills.
It is total fear that pushes the 4 week bill to 0%.
-SWUSC |
`Everybody is ignorant. Only on different subjects.' Will Rogers
"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." Alan Greenspan, 1966. |
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kieblera5
Penny Hoarding Member
USA
859 Posts |
Posted - 12/10/2008 : 15:57:37
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quote:
Originally posted by swusc
quote:
Originally posted by Delawhere Jack
Maybe I'm just dense.....but why would anyone buy T bills with 0% return? Why not just hold cash in hand? What possible benefit could they offer?
It is the safest place to park cash. Banks fail. You have government backing on all cash invested in treasury bonds/bills.
It is total fear that pushes the 4 week bill to 0%.
-SWUSC
Sure makes me feel better..... |
Democracy is being allowed to vote for the candidate you dislike least.
Never argue with an idiot. They will drag you down to their level and then beat you mercilessly with experience.
Caller number seven gets the Peace Prize!
Get coding tips, tricks, and more at: http://codingmonday.blogspot.com |
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 12/10/2008 : 16:19:55
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The government is backing all of the banks via FDIC and they raised the FDIC insurance to $250,000 until December 2009.
The US Government can't afford to let the banks fail andlet depositors lose money, the FDIC has to step in and make good on the deposits in the banks, otherwise there will be a worldwide run on US banks as foreigners and citizens pull their money out.
With rates at zero for 4 week bills, it makes more sense to-
Buy government bonds that do pay interest (10 year, 30 year)
Buy a CD from a FDIC insured bank, one that pays interest
Buy gold or silver. Neither gold or silver pay interest but they will at least hold their value over the next ten years, wish I could say that about the buying power of the dollar. |
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swusc
Penny Hoarding Member
USA
553 Posts |
Posted - 12/11/2008 : 17:19:06
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$250k isn't anything in the big picture.
Just look at the companies in the SP500... $250k coverage wouldn't mean crap to them. FDIC is good for regular joes, but big players in the economy $250k isn't anything.
They must have attach to cash and they want safety... they must put their savings into T bills or money market funds, which put their money into T bills.
CD, gold, silver and all that don't help people like Walmart. They can't take risk with operating capital.
The US government will let depositor above FDIC limit lose their money. Foreign governments have their money in government bonds.
-SWUSC |
`Everybody is ignorant. Only on different subjects.' Will Rogers
"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." Alan Greenspan, 1966. |
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AGgressive Metal
Administrator
USA
1937 Posts |
Posted - 12/16/2008 : 16:31:39
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| Plus, the FDIC can only bail out so many people so fast. It sometimes takes months. You can't have a delay like that with operating capital. |
And he that hath lyberte ought to kepe hit wel / For nothyng is better than lyberte / For lyberte shold not be wel sold for alle the gold and syluer of all the world.
-Caxton's edition of Aesop's Fables, 1484 |
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Nickelless
Administrator
USA
5580 Posts |
Posted - 12/16/2008 : 17:15:43
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quote:
Originally posted by swusc
$250k isn't anything in the big picture.
Just look at the companies in the SP500... $250k coverage wouldn't mean crap to them. FDIC is good for regular joes, but big players in the economy $250k isn't anything.
They must have attach to cash and they want safety... they must put their savings into T bills or money market funds, which put their money into T bills.
CD, gold, silver and all that don't help people like Walmart. They can't take risk with operating capital.
The US government will let depositor above FDIC limit lose their money. Foreign governments have their money in government bonds.
-SWUSC
IMO, the FDIC raised the dollar limits of what it covered not to protect depositors, but to keep people from pulling their money out of the banking system. They're trying to scam depositors into leaving their FRNs in the bank at the very time when the money has more purchasing power in the marketplace than value in the bank. People need to see past this ruse and spend their money to buy necessities and stock up on long-term needs before the bailout sellout snaps back with hyperinflation in the next few years. |
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Interest rates on 4-week T-bills at 0 percent
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