The Yield Curve Inverts; Negative Rates Far Behind?
It all depends. Listening to soothsayers Alan Greenspan and Janet Yellen is probably not the best idea given how wrong they have been in the past. Flawed ideology is just the beginning. Public and private markets disconnect. Bond and equities disconnect. Confusion between correlation and causality muddle along daily. The world’s central banks have run out of quivers. But the man with the flawed ideology has admitted negative interests are a real, potent and admittedly bizarre possibility. There is no lower bound.
So just how weird exactly are negative interest rates? Perhaps for those who know just enough about quantum mechanics to be dangerous, think of the completely mind blowing double slit experiment bombarding one atom at a time at a two different slits and the resulting vertical bands that result. Can atoms actually have consciousness. Just watch Dr. Quantum’s little animation.