Jose Canseco has entered the negative interest rate deabte.
In a few tweets on Wednesday night, baseball great Jose Canseco offered his thoughts on the Bank of Japan's new policy to institute a negative interest rate of -0.1% on some reserves parked at the bank.
Additionally, as of trading on late Wednesday night in New York the yield on Japanese Government Bonds, or JGBs, was negative out to 8 years.
And so at least on a surface reading, it seems like you pay the Japanese government to lend it money. (This isn't exactly how it works, as the yield on JGBs being negative means that the amount above par — or how much you have to pay for each $1 of principal — is usually enough such that the effective yield on the bond is negative.)
Anyway, the real story here is that negative rates continue to go more mainstream.
Here's Canseco:
Negative interest rates in Japan is blowing my mind
— Jose Canseco (@JoseCanseco) February 4, 2016
Who is advising Japan? Forcing banks to lend all ¥ will not get 2% inflation. It creates loanees market with even lower rates. Dumb move
— Jose Canseco (@JoseCanseco) February 4, 2016
Bank of Japan should call them willie wonka bonds "YOU GET NOTHING. yOU LOSE!"
— Jose Canseco (@JoseCanseco) February 4, 2016Join the conversation about this story »
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