Two political paths: Lurching towards socialism and heading towards capitalism. Two news stories:
First, from Associated Press:
Economic twilight zone: Bonds that charge you for lending
Imagine lending money to someone and having to pay for the privilege of doing so. Or being asked to invest and informed of how much money you’ll lose.
And:
On Wednesday, for the first time ever, the German government sold 30-year bonds at a negative interest rate. The bonds pay no coupon interest at all. Yet bidders at the auction were willing to pay more than the face value they would receive back when the bonds mature.
I could see short-term loans at negative interest. Great (if expensive) place to stash some cash but 30 year bonds? Not a lot of consumer confidence there...
Second, from The Telegraph:
Sterling soars as Brexit deal hopes rise: as it happened
Undoubtedly, there’s been some good money made on the currency markets over the last week. Short interest in the pound dropped last week, and anyone who cashed out a bet against sterling should be feeling smug now.
The pound is riding high against other currencies — marginally up, and probably worth a few euros if you’ve waited until the last minute to take a trip to the continent this summer.
What is good for business is also good for the nation. Go Brexit!
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