White Mountains has a negative rate of return of 1.97% and earnings yield of 11%.
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In other words, the U.S Treasury could offer a four-week bill at a negative rate of 0.10%.
If enough persons want to own T-bills at any price, even at a negative rate of interest, then THAT is the appropriate price at which the bill should trade.
T-bills yield a negative real rate of return now and 10-year Treasuries yielding 4% don't light my fire.
In this negative real rate environment, a new Nifty Fifty group may emerge.
Firms that finance this equipment with borrowed money may end up paying a negative tax rate on the deal.
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They further suggest that the negative growth rate effect of high debt may start from levels of around 70-80% of GDP.
Back in the 1970s they charged foreigners a fee for having a bank account, in effect imposing a negative interest rate.
Commodities, such as oil, agricultural resources, and precious metals, like gold and silver, will all be big winners in this negative real rate environment.
While Americans were arguing about Reaganomics in the 1980s, Swedish households were enjoying a negative tax rate on capital income, once generous deductions and adjustments for inflation were taken into account.
The report shows that nationally the negative equity rate had fallen to 30.9 percent from 31.4 percent in the first quarter and that half of all borrowers under 40 were underwater on their home loan.
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Germany sold 4.17 billion euros of negative interest rate two-year German bonds drew the strongest demand since a January sale of a similar maturity as investors sought new places to hide their money, even if it means losing some of it.
Revenues grew by 20% despite higher growth in subscribers due to negative exchange rate effects. 2012 was a stellar year for DirecTV in terms of Latin American expansion, and the company believes that its good run will continue in 2013 as well.
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The personal saving rate in July dipped to a negative 0.9%, the 16th month in a row the rate has been negative.
However, while the rate of negative equity is higher in younger age brackets, the delinquency rate is noticeably lower.
Some suggest the Swiss ought to announce a peg to the euro or engineer a negative nominal interest rate.
In our negative real interest rate environment, the market has begun to put a premium on the certainty of income.
In this negative real interest rate environment, it is best to focus on assets that will stand to benefit, such as dividend paying large cap equities.
Instead, his legacy will linger in the shape of the biggest economic imbalances in American history: a negative household saving rate and a record current-account deficit (see chart 1).
In the current negative real interest rate environment, these large cap stocks will be big beneficiaries as investors seek out secure, growing dividend yields, something that fixed income markets will not be able to provide.
While the rate of negative equity is comparable between the two sets of borrowers, the delinquency rate and loan-to-value ratios are substantially lower for borrowers who purchased homes in 2010 (see Figure 2).
In a world where annual inflation is running at a 3% rate (actually more if you think for a moment about your rising healthcare and educational costs), there is an overwhelming demand for a security whose rate of return is a negative real (inflation-adjusted) rate of 3%.
She calculates that the current share price embeds a 10-year average growth rate of negative 6.9%.
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At any rate, negative views of Mr Romney have been on the increase for several months now among independents.
For instance, if Treasury bonds yield 2% a year, but inflation is 3%, then the real rate is negative 1%.
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You might remember that RPI inflation rate went negative in 2009, when interest rates were falling sharply, whereas the CPI measure never went below 1%.
The rate is negative even in the present low inflation setting.
On the other hand, too lax policy, such as keeping the real deposit rate deeply negative, could fuel asset price bubbles that, by definition, eventually burst.
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Kansas City Fed president Thomas Hoenig estimated in a recent interview that the real fed funds rate was negative 40 percent of the time during the 1970s and the 2000s, the two debt supercycles Milken referred to.
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