Dow Drops 1,032 Points on Coronavirus Fears [Editor’s Note: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway (“Berkshire”), or any other entity referenced. Edina Realty is a subsidiary of Berkshire.] No, I don’t see mortgages becoming free any time soon. Even if long-term interest rates...Read More
Negative Interest Rates as “Black Hole Experiment” If somebody else thinks what you think, you can’t be crazy, right? Explanation #2: you’re both suffering from exactly the same malady. Either way, it’s reassuring to read famed investor Jeremy Grantham’s latest thoughts on today’s bizarro world of negative interest rates and inflated asset prices, courtesy of...Read More
Making the Mattress Look Good “Investors are willing to lose a little to make sure they don’t lose a lot.” –“Accentuate the Negative”; The Economist (1/24/2015) Could today’s already infinitesimal interest rates ever actually fall below zero, to the point where mortgages sport negative interest rates? My knee jerk reaction is, “Of course not! That...Read More
Short-Term German Bonds Pay Negative Interest “I am not so much concerned with the return on capital as I am with the return of capital.” –Will Rogers Want an indication of just how bizarro today’s environment of zero percent interest rates (“ZIRP”) is? Investors just accepted a negative interest rate on short-term German bonds: In an...Read More
