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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 negati
by 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 agoYes 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 agoIf 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.