mercoledì 14 agosto 2019

[Bond mechanics] Very useful links

1) Very simple explanation of the Negative Interest Rates and the link between interest rate and demand.

https://www.zerohedge.com/news/2019-08-02/i-explain-mrshorseman-mechanics-negative-interest-rates


2) Inverted Yield curve as a lead indicator for economic recessions

https://www.investopedia.com/articles/economics/08/yield-curve.asp

3) Differences, not just simple words, between recession and depression. One of the best videos ever.

https://www.youtube.com/watch?v=PHe0bXAIuk0


Note that media always refer to the term "crisis"  which is so abused that has become meaningless and cannot help you take any decisions.



This page is gonna be updated each time I find out some extra useful links.


Underlying principle: the interest rate is the driving force in today's economy. Understanding the IR is mandatory.

The IR gauges the cost of money. But the money is just time-limited information between a borrower and a lender . So what kind of cost does the IR measure exactly? Even better, what is the information that the IR keeps hidden?

This is still an open point, not completely clear to me, and I do not like the official explanations. They are too simplistic.


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