Friday, November 21, 2008

ZERO POINT ZERO TWO????

This is pretty scary - 3 month Treasury bills are yielding 0.02% - people are so afraid of other investments that the U.S. Treasury can essentially borrow money for nothing. In Paul Krugman's words, "This is an economic emergency."



Here's a graph from Brad Setser that shows how drastic this decline is -



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