Comments on: TIPS rates plunge http://www.savings-bond-advisor.com/tips-rates-plunge/ Fri, 04 Jul 2008 18:48:18 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/tips-rates-plunge/#comment-17889 Tue, 18 Mar 2008 15:42:43 +0000 http://www.savings-bond-advisor.com/tips-rates-plunge/#comment-17889 Hi Mike - I'm no John Galt - I'm in favor of both regulations and taxes when times are good and socialized losses when times are bad. I'm just pointing out that all the John Galts got their way when times were good; but look, now that things have turned they're are asking for and getting bailouts. It's hard to imagine that the next I bond fixed-rate won't be lower than today's 1.20%, however, it's hard to imagine that an investment bank can become worthless in a week, too. So let me say it this way: <i>if TIPS rates don't rise, and that is always possible</i>, the next I bond fixed-rate will be lower. Tom Adams Hi Mike - I'm no John Galt - I'm in favor of both regulations and taxes when times are good and socialized losses when times are bad.

I'm just pointing out that all the John Galts got their way when times were good; but look, now that things have turned they're are asking for and getting bailouts.

It's hard to imagine that the next I bond fixed-rate won't be lower than today's 1.20%, however, it's hard to imagine that an investment bank can become worthless in a week, too. So let me say it this way: if TIPS rates don't rise, and that is always possible, the next I bond fixed-rate will be lower.

Tom Adams

]]> by: Mike McCune http://www.savings-bond-advisor.com/tips-rates-plunge/#comment-17779 Sat, 15 Mar 2008 01:49:44 +0000 http://www.savings-bond-advisor.com/tips-rates-plunge/#comment-17779 Tom, Who is John Galt? And what does he think the next I-bond fixed rate will be? -Mike Tom, Who is John Galt? And what does he think the next I-bond fixed rate will be?

-Mike

]]> by: Tom Adams http://www.savings-bond-advisor.com/tips-rates-plunge/#comment-17624 Wed, 12 Mar 2008 15:03:44 +0000 http://www.savings-bond-advisor.com/tips-rates-plunge/#comment-17624 Danny - the February CPI will be announced Friday - see my update then on my <a href="http://www.savings-bond-advisor.com/cpi-inflation-update/" rel="nofollow">Inflation Update</a> page. Tom Adams Danny - the February CPI will be announced Friday - see my update then on my Inflation Update page.

Tom Adams

]]> by: danny pierce http://www.savings-bond-advisor.com/tips-rates-plunge/#comment-17611 Wed, 12 Mar 2008 01:50:16 +0000 http://www.savings-bond-advisor.com/tips-rates-plunge/#comment-17611 Any guess as to what the next inflation compontnet may be? Any guess as to what the next inflation compontnet may be?

]]> by: Tom Adams http://www.savings-bond-advisor.com/tips-rates-plunge/#comment-17599 Tue, 11 Mar 2008 16:14:39 +0000 http://www.savings-bond-advisor.com/tips-rates-plunge/#comment-17599 Hi Ken - If you are a Citibank or a Goldman, the Treasury will fall all over itself showing you altruism. Free markets are what capitalism is about only in good times, apparently. In bad times the banks are happy to be welfare queens. The I-bond fixed-base rate hasn't ever been set below 1.0%. Looks like it may be hard for them to follow that standard this time, however. On the other hand, maybe this morning's <a href="http://calculatedrisk.blogspot.com/2008/03/federal-reserve-announces-expansion-of.html" rel="nofollow">Fed Announcement</a> will solve all the problems and set the financial world aright again. <a href="http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_baum&sid=avFnuh9oWHVo" rel="nofollow">Here's a better solution</a>; if we're going to have free markets in good times, we need to have them in bad times, too. <i>A financial system that privatizes gains but socializes losses is seriously flawed.</i> - <a href="http://www.rgemonitor.com/blog/roubini/248801/" rel="nofollow">Nouriel Roubini</a> Tom Adams Hi Ken - If you are a Citibank or a Goldman, the Treasury will fall all over itself showing you altruism. Free markets are what capitalism is about only in good times, apparently. In bad times the banks are happy to be welfare queens.

The I-bond fixed-base rate hasn't ever been set below 1.0%. Looks like it may be hard for them to follow that standard this time, however.

On the other hand, maybe this morning's Fed Announcement will solve all the problems and set the financial world aright again. Here's a better solution; if we're going to have free markets in good times, we need to have them in bad times, too.

A financial system that privatizes gains but socializes losses is seriously flawed. - Nouriel Roubini

Tom Adams

]]> by: Ken http://www.savings-bond-advisor.com/tips-rates-plunge/#comment-17598 Tue, 11 Mar 2008 15:48:00 +0000 http://www.savings-bond-advisor.com/tips-rates-plunge/#comment-17598 Seems like this doesn't bode well for the new I-bond fixed rate that'll come out on May 1st? Our only hope about the fixed rate is that maybe the Treasury is planning to offset the new low purchase limits with decent fixed rates. Since the purchase limit is so low, there should be less concern about the cost to the Treasury or about competing with the banks. A decent fixed rate could truly help the small time savers. We'll see if there is any of this altruism at the Treasury in May. Seems like this doesn't bode well for the new I-bond fixed rate that'll come out on May 1st?

Our only hope about the fixed rate is that maybe the Treasury is planning to offset the new low purchase limits with decent fixed rates. Since the purchase limit is so low, there should be less concern about the cost to the Treasury or about competing with the banks. A decent fixed rate could truly help the small time savers. We'll see if there is any of this altruism at the Treasury in May.

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