This morning, short term U.S. Treasury bills have been selling at a negative rate of return. That is to say, if you want to put your money in what once was known as the safest investment vehicle in the world, you'll have to pay more to buy a Treasury bill than you'll ever get back in interest.Buy a short-term U.S. bond and you're guaranteed a loss on your money!
Writes Princeton economics professor Paul Krugman:
This didn’t even happen in the Great Depression. Professionally, I’m fascinated. As a citizen, I’m terrified.True, it is unprecedented. But one must remember that the alternative safe place for your money -- a mattress -- doesn't come free, either. That's why we strongly recommend using an old mattress, one that you already have on hand.
If you'd like to thank us for this investment advice, just write your thank-you note on the back of a $100 bill and mail it in.
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