Words of Advice:

"If Something Seems To Be Too Good To Be True, It's Best To Shoot It, Just In Case." -- Fiona Glenanne

"Flying the Airplane is More Important than Radioing Your Plight to a Person on the Ground
Who is Incapable of Understanding or Doing Anything About It." -- Unknown

“Never argue with stupid people, they will drag you down to their level
and then beat you with experience.” -- Mark Twain

"Everything is easy if somebody else is the one doing it." -- Me

"Eck!" -- George the Cat

Tuesday, December 16, 2008

Money For Nothing

The Federal Reserve cut its benchmark interest rate to zero to .25%.

So if you purchase a short-term T-bill, it is possible that you may get a negative interest rate, which means that you have to pay the government to hold your money for you.

3 comments:

BadTux said...

There will be no negative interest. At that point, folks will simply start shoving greenbacks under their mattresses. Let's see, do we buy ten thousand dollars of treasury bonds and pay $10,500 for the privilege, or do we buy 100 $100 bills and shove them under our bed? Hmm...

- Badtux the Depressed Penguin
(Hey, we're in a depression, so why not?)

Distributorcap said...

the govt couldnt pay me enough to take my money out of the mattress

Anonymous said...

The only folks who get that low rate are the damn bankers. Check the rate you pay for your credit - if you're lucky enough to have some.