Friday, December 05, 2008

0% Interest Rates are Here!

Worldwide!

In the US, the Fed funds rate may be 1%, but 3-month Treasuries are currently yielding 0.01%.

The Bank of England dropped its rate from 3% to 2%, the lowest rate since the central bank's founding in 1694.

Japan-style near-zero interest rates are here and may be here for a while. I predict a lost decade, for the entire world this time rather than just Japan.

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