Andy Warhol One Blue PussyAndy Warhol NeuschwansteinAndy Warhol Mount Vesuvius
Inverted interest rates? What's that? Who cares? Even if you don't understand what Mr. Greenspan is saying (and almost nobody does) it is important to you because it could mean you might lose you job next year or have to cut back on some of the things you want to acquire.
It really is very simple. We are talking about long term and short term bonds that pay dividends. If you lend me a thousand dollars with the agreement I will pay you back in one year you can easily understand that the risk is less than if I agree to pay you back in 20 years. The amount of risk is reflected in the rate of interest. Longer is higher and , but most of the media broadcasters don't understand it because they are reading from a script written by someone else who doesn't understand it either. Let me take a whack at explaining it in plain language.There are two kinds of interest rates - short term and long term. The amount of interest paid has to do with the amount of time that is involved
Wednesday, January 7, 2009
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