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Bonds are an investment (?) Do you have some sort of ideological position on debt vs. equity, I didn't know that was even an issue. Bond holders should be puni
by uvdiv 14y ago
Bonds are an investment (?) Do you have some sort of ideological position on debt vs. equity, I didn't know that was even an issue.
Bond holders should be punished for taking money out of circulation
The money goes to the company or government that's borrowing it, quite likely because they want to build something or expand. It's not out of circulation, it's changed hands.
- confluence 14y agoBonds have low roi for a reason - they aren't taking on nearly as much risk in developing new products as their equity counterparts. However we want to encourage new products. Hence we punish those who don't want to take risks. When one pulls low yields one shouldn't complain about the government, one should find higher yields.
- uvdiv 14y agoHence we punish those who don't want to take risks. They already get lower yields in proportion to their risk. Why punish them further by fiddling with yield curves, forcing the spread to be artificially larger? When one pulls low yields one shouldn't complain about the government, one should find higher yields. If you want government to purposefully manipulate yields, than of course that would become a political complaint.