Nikhil

Why Would Anyone Buy T-Bills at 0%?

guns gold and canned food.. interesting. I like the one in the middle the most


On Dec 10 01:11 PM Socialism cannot compete! wrote:

> Note the big rise in commodities and gold of late? We're looking
> at the "big investors" readying for "The Plunge of All Plunges" perhaps?
> Pulling everything outta stocks and into gold & Treasuries? Personally...I'm
> stocking up on guns, gold, & canned goods! Civil unrest ahead
> when it all comes down...and there are both economic and political
> events on the near horizon that will trigger it all. Scary but exciting
> -- real freedom may finally be on the horizon again.

Why Would Anyone Buy T-Bills at 0%?

a good question indeed, i think gold is a good answer. i am not a gold bug and have started looking at it recently. but this is precisely the reason why people hide in gold, where do they find a store of value. if others think the same they would come to gold later so some like to move in early - and there is a self fulfillinf prohecy. other substitutes: foreign currencies: banks can fail anywhere, and all major countries are facing downward pressrure, treasuries are ruled out, money market funds are suffering, real estate: i dare not touch, food: (perishable: i cant eat that fast; non-perishable, i doubt a pension fund manager would like 10 tonnes of sugar in his office), commodities - yes a good place , especially if you buy the long term story , in the short term one can def bleed there, what else.. nothing much .. do feel free to add to the list.


On Dec 10 11:42 AM Smarty_Pants wrote:

> Q: "Why Would Anyone Buy T-Bills at 0%?"
>
> A: Because you can't fit $100 Million under your mattress.
>
> OK, kidding aside, that's a very good question. The very good follow-up
> question would be "Where else can they put it?"
>
> Before anyone blurts out 'cash' please remember that any huge amount
> of money is difficult to convert to currency and if placed in a money
> market fund is probably going to be parked in commercial paper or
> right back into those treasuries.
>
> What's the short list of safe places to park large amounts of money
> these days where the real return isn't negative or where the risk
> isn't "too high"?
>
> It's a real head scratcher.