[noodler]

Originally Posted by Heads the ball

Well change the rules then. The law should serve the people, not the other way around.

That does not really make sense.

If the ECB were to do as you suggest for one, then it would lead to demands to do it for all and then the effect is nullified.

Originally Posted by Heads the ball

I dont know. Didnt Germany issue bonds recently at zero per cent (I could be wrong). We probably wouldnt get it any lower than zero, no

They issued some short-term debt for that - their 10 years are still over 1%.

The point is that if we would perverse situation where Ireland can borrow more cheaply than everyone everyone in the Euro area despite having the highest deficit.

Originally Posted by Heads the ball

I dont know. I dont really care tbh.

Unfortunately, it matters so you should care. One thing this crisis had proven is that if one country gets a concession from Europe then another seek the same concession.

Originally Posted by Heads the ball

Same could have been said about "bailouts" and the bank guarantee.

Not too sure what this means in relation to the oart of my post you directed it too.

[everdead.ie]

Originally Posted by Heads the ball

Well change the rules then. The law should serve the people, not the other way around.



I dont know. Didnt Germany issue bonds recently at zero per cent (I could be wrong). We probably wouldnt get it any lower than zero, no



I dont know. I dont really care tbh.


Same could have been said about "bailouts" and the bank guarantee.

Germany recently issued 10yr bonds at around 1.3% who on earth would get 0% they would get no return?

http://www.businessworld.ie/livenews...ollingnews.htm

Even Germany pays above the Euribor Rate and for a reason it has to make financial sense for people to loan money to a country.

[noodler]

Originally Posted by everdead.ie

Germany recently issued 10yr bonds at around 1.3% who on earth would get 0% they would get no return?

http://www.businessworld.ie/livenews...ollingnews.htm

Even Germany pays above the Euribor Rate and for a reason it has to make financial sense for people to loan money to a country.

It has happened a couple of times with the shorter-term bonds in recent months.....

In fact
http://online.wsj.com/article/SB1000...googlenews_wsj

[everdead.ie]

Originally Posted by noodler

It has happened a couple of times with the shorter-term bonds in recent months.....

In fact
http://online.wsj.com/article/SB1000...googlenews_wsj

There is a difference over a long term bnd like a 10 year bond though as it's value is going to be decreased by inflation anyway.

[noodler]

Originally Posted by everdead.ie

There is a difference over a long term bnd like a 10 year bond though as it's value is going to be decreased by inflation anyway.

?

Not sure what you are getting at?

Leaving inflation aside, the Germans, in the above example, will be paying back less in nominal (cash) terms then they borrowed.



Obviously you need to pay a higher yield generally to get somebody to take a longer-term security.

It is still amazing that some people (well investment funds more like) feel so worried about other bonds (or even deposit accounts) that they would rather lump money in somewhere and take a nominal loss (nevermind the larger real loss once inflation is taken into consdieration)

[everdead.ie]

Originally Posted by noodler

?

Not sure what you are getting at?

Leaving inflation aside, the Germans, in the above example, will be paying back less in nominal (cash) terms then they borrowed.



Obviously you need to pay a higher yield generally to get somebody to take a longer-term security.

It is still amazing that some people (well investment funds more like) feel so worried about other bonds (or even deposit accounts) that they would rather lump money in somewhere and take a nominal loss (nevermind the larger real loss once inflation is taken into consdieration)

What I mean is if I give you a loan now at -0.6% and you pay me back the money in two years I lose money but if I did that over ten years I'd losean awful awful lot of money.

[noodler]

Originally Posted by everdead.ie

What I mean is if I give you a loan now at -0.6% and you pay me back the money in two years I lose money but if I did that over ten years I'd losean awful awful lot of money.

Yeah but as we both said the German 10-year yield is still positive at over 1%.

Anyway thought you were just splitting hairs after I pointed out that people are actually giving Germany free money.

No bother.

[everdead.ie]

Originally Posted by noodler

Yeah but as we both said the German 10-year yield is still positive at over 1%.

Anyway thought you were just splitting hairs after I pointed out that people are actually giving Germany free money.

No bother.

Ya I know sorry I just meant it would be unrealistic to have a country finance their long term debt at zero or approaching zero.