Bonds Away
Why would anyone invest in bonds when the central banks of the world are printing money like it's going out of style? Why would anyone invest in a bond when your local bank, through the fractional reserve system, can take your dollar and lend out ten dollars? Millions of people and institutions look to the bond markets of the world to park their money. They must know something I don't. It's a mystery to me why someone would put money in a US Treasury bond for zero percent interest. Would someone explain this to me? Aren't bond investors supposed to be the smartest of all investors? Why will the Fed raise interest rates? One reason is to slow inflation, and another reason is because investors will demand higher interest for their savings. Old bonds will be dumped and money will be lost. When the bond market crashes, trillions of dollars will scurry around looking for a new home. They may buy gold,oil,diamonds,real estate,higher priced bonds, or even stocks - but high int...