November 20, 2008

0%.


In your wildest dreams, did you ever think you'd see it?

ZIRP.

Wow.

And he told you what comes next.

22 comments:

Nico said...

Look at this Mish post, titled "Now Presenting: Defaltion!", by Mish:

http://globaleconomicanalysis.blogspot.com/2008/03/now-presenting-deflation.html

It's from March! Anyone who doesn't have Mish on their rss readers can not be taken seriously when trying to "predict" the future of the economy.

Anonymous said...

Is Bernanke an expert ON the Depression or an expert is CAUSING The New Depression.

0% absolutely the WRONG thing at the WRONG time to do.

Mark my words, interest rates to the moon 10-12%, soon.

1-20-09 The END of an ERROR

DIE

Roccman said...

Monetizing debt has been the way of the declining empire since the beginning of recorded time.

No suprises here.

Prepare accordingly.

Got Bunker?

Roccman said...

WRT Mish

Like Denninger...

They believe oil is a renewable resource.

Tonto said...

This is a combination of denial and total stupidity:

Nov. 20 (Bloomberg) -- Saudi billionaire Prince Alwaleed bin Talal plans to increase his stake in Citigroup Inc. to 5 percent after the U.S. bank lost almost a quarter of its value yesterday.

``Prince Alwaleed began buying Citi shares, as he strongly believes that they are dramatically undervalued,'' he said today in a statement.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aYFMlJSugZqQ&refer=home

Dr. Huxtable said...

Keith, I don't have time to read "what comes next". What comes next?

How can we protect capital and/or profit with this upon us?

Afterthought said...

It could go negative, it could already be negative!

After all, aren't we giving banks capital (not mere loans) in order to "get them lending again"?

They have a 1% window and wads of cash to boot!

Could be negative already!

But this isn't a monetary problem, it is an overpopulation / technology problem.

Anonymous said...

Call me stupid, but isn't deflation what's needed to cure the asset bubble?

Is it possible to have a negative interest rate? Sort of free money, but with an extra stimulus?

Anonymous said...

Why not? Local goverments have been doing it for years. I know the state of Maryland has had many programs with zero percent loans for low-income borrowers for mortgages and closing costs, home improvement, etc. A lot of those loans were not only zero percent, but were eventually completely forgiven. So what the hell - who needs payback?

Anonymous said...

can I get a heloc that is prime + 0?

party on Wayne! Party on Garth!

chesty love said...

Japan tried the 0% interest rate thing too. DID NOT WORK.

satan said...

I will scare you into the market and take your money.

Once you are broke, you will be my slave.

Your Friend in DC

Satan...

FlyingMonkeyWarrior said...

Never thought I would see $40.00 oil again either, but the China Oil People say that is the next drop.
FMW

Oil groups expect $40 barrel – CNOOC head
By Alan Beattie in Barcelona

Published: November 18 2008 20:35 | Last updated: November 18 2008 20:35

The world’s national oil companies expect oil prices to fall further and will cancel most planned investment projects even at current levels, according to the head of a Chinese state-owned group.

A recent meeting of the national oil companies in Beijing had predicted oil prices would fall to about $40 a barrel, Fu Chengyu, chief executive of China National Offshore Oil Corporation, told a conference in Barcelona.

Anonymous said...

Why stop at 0?

SD said...

Zero percent didn't work in Japan. I don't know why we think it will work here.

What a joke.

vanilla ice said...

Well look at that. The Dow fell below its magical 5 year low of 7880 made just six weeks ago, October 10, 2008.

Anonymous said...

"How can we protect capital and/or profit with this upon us?"
-----------------
I think we need to pay more attention to how we will protect ourselves, rather than our capital.

Got Seeds?
Got Guns?

vanilla ice said...

"Why stop at 0?"

Yeah, Bercracky's lending out money at 1%. Inflation is at minimum 5% so I'm making 4% just for taking Craky's money.

What's another 2%, who's counting. Make it -1% interest rates.

At least Bercraky would make it explicit that you make money from borrowing from the Fed. We'd all feel better.

duarte said...

The DOW looks like a return to the long-term mean. Yikes! That would put us at about 4500 or so next summer.

Anonymous said...

n0
Coconutz!

print print print said...

They should silence the "out of ammo" people and skip zero and drop it straight to -0.5%.

Her hold have some cash, we'll pay you for the privilege. What better way to print money?

Out at the peak said...

We'll be lucky to find safe 2% savings interest that's no longer than 1 year commitment. That really sucks.

Can't bet in the options market because the options writer might not pay up.

Can't really short or go long in the market because of strong volatility.

Money is just going to sit. Hopefully houses become dirt cheap sooner than later so I can use that cash as shelter.