Re:Happy 400th birthday to the world's oldest bond
by wqaatwt on Wednesday December 25, 2024 @03:21AM
(#42507660)
Thank you for this well developed argument..
It obviously does on the macro level.
On the individual level perhaps not so much. Unless you have a lot of debt as quite a few people tend to do. Then it also has obvious benefits.
Pre inflation standard bond yields were around 4-5%. Combine that with longterm deflation over several decades (e.g. late 1800s) and then consider how severely screwed you are if you have a mortgage on your farm..
It obviously does on the macro level.
On the individual level perhaps not so much. Unless you have a lot of debt as quite a few people tend to do. Then it also has obvious benefits.
Pre inflation standard bond yields were around 4-5%. Combine that with longterm deflation over several decades (e.g. late 1800s) and then consider how severely screwed you are if you have a mortgage on your farm..