No. of Recommendations: 3
I'll have to find the article, but I'd argue that anything much under 4% should be labeled "government subsidized." How can Switzerland maintain .69% 10 year rates without some support? Looking at these traditional US rates, and even comparing with equities shows that we would be at 4% or higher now without intervention.
http://advisorperspectives.com/dshort/updates/Treasury-Yield...

And looking at US historical rates, how risky were those higher rates pre-1990.

Also, since I just returned from Australia this weekend (which you Paul know), their CD rates in the 5-6% range look pretty good in this inflation environment, but they're also tempered by home mortgage rates in about the same range.

I think it will be MORE interesting to see how long or if US corporate 10 year rates will remain close to treasuries, and how this all unwinds.

Interesting!

Bob
RYR Home Fool
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement