Revealing video below in that none of these people (except ofc Dimon) understand how Depository Institutions are regulated.... SCARY!!!!
“I would not be a buyer of Treasuries” at these rates, JPMorgan CEO Jamie Dimon says. “Unfortunately we are, we have no choice.” https://t.co/nlRakdtOh1 pic.twitter.com/SefQxpqseA
— CNBC (@CNBC) December 8, 2020
3 comments:
The MOST US Treasuries should return is ZERO percent MINUS overhead costs with the shorter maturities costing even more (more negative yield).
So Dimon should be grateful for the welfare proportional to account balance (positive yields on risk-free debt) he's currently receiving.
Parasites ...
52 week yield 0.12%.... ie zero....
Then if Fed raises rates they have to show the loss... until the whole thing crashes like Dec 2018 and then they have to reverse....
Cyclical behavior...
52 week yield 0.12%.... ie zero....
Not really, that's 12 basis points in addition to the overhead costs.
But it's nice to see that Mr. Market (to the extent he's not rigged?) concurs with the pricing of risk-free debt.
Now what's needed is a ruling by the Supreme Court that non-negative returns on inherently risk-free sovereign debt (including so-call "bank reserves") violate equal protection under the law (the 14th Amendment to the US Constitution) in favor of the rich.
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