3 ms·

Can someone explain this like I’m five please? I don’t know anything about the bond market so the article reads like gibberish.

• breakfastduck 5y ago
  I see lots of comments like this floating around the internet, and while there's nothing wrong with learning, it's a bit silly to ask a question like this. You don't know anything about the bond market, so what is an article entirely about bonds going to do for you? A better starting point would be to find out what a bond is in the first place. I'm sure there's plenty of literature available. It gives me the same vibe as asking 'How do I build X in C++? I don't know how to program' instead of 'How do I learn to program C++?'
  • ryanmarsh 5y ago
    Good point. I guess what I should have asked is “what should someone unfamiliar with the bond market understand about this article”
  • pinum 5y ago
    My impression after a few minutes of googling various bond-related terms is that this means: "Investors in German government bonds can currently expect a negative return on their investment, in both nominal and real terms, regardless of the bond's maturity date". which could be simplified further to "If you were to give a loan to Germany right now, you would lose money in the end, regardless of how long or short a repayment period you offer". Would you say that's close enough for a layperson ELI5?
    • ryanmarsh 5y ago
      Yes that’s exactly what I was looking for. Thank you. So then the next question is, what’s the broader implication for ordinary folks (German citizens even)?
      • thehappypm 5y ago
        If buyers are willing to buy these bonds -- it's great for Germany the nation. They can take someone's $100 now, spend it on something like infrastructure which improves the tax base, then in 30 years they only owe $90.