From Bill Bonner, Chairman, Bonner & Partners:
AIKEN, South Carolina – The Dow had a good day Monday. Up 229 points… or about 1.5%.
The significance of that is uncertain.
Is the market staging a comeback from this year’s losses? Or is it just lollygagging around as usual?
Trifecta of Absurdity
We are still aghast and agog over the spread of NIRP – negative-interest-rate policy.
In Japan, for example… where almost two-thirds of government debt carries a negative yield… savers pay a bankrupt government for the privilege of lending it fictitious money.
It is a trifecta of absurdity: First, the money is phony. Second, the borrower is insolvent. Third, the interest rate is less than nothing.
And yet, this is not just some strange fluke or financial skullduggery. Central banks in Sweden, Denmark, Switzerland, the euro zone, and Japan – all of them presumably run by sober adults –…