Treasuries Should Be Yielding 10%....?

http://www.thedisciplinedinvestor.com/blog/2009/07/13/treasury-yields-should-be-at-10/



Just for fun....

Take out a bond calculator....

Assume the normal rate for LT debt is 4%....

Now examine the losses at a 10% yield....

Now examine all assets priced with 4% debt....

Now think Japan....and how it is stuck....

And think about ....the incentive to save....particularly at less than 1% Japan rates....

.......................................................................................

One could suggest further "large" losses could be in store....as a real possibility....

For any country that suppresses its real ....normal rates....
 
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