In Plus episode 475, we review investment conditions for convertible bonds. We answer a member's question on investing in Treasury ETFs and cash. Finally, we discuss the tax consequences when restricted stock units vest. … [Read more...]
441 Plus: Fixed Rate Debt, Japan and Yield Curve Control, Activist Short Sellers, Treasuries and Taxes
In Plus episode 441, we consider the economic impact of private-sector fixed-rate debt versus variable-rate debt. We discuss the Bank of Japan's apparent abandoning of yield curve control. When Treasury bondholders have to pay capital gains tax. Finally, we analyze activist short sellers. … [Read more...]
285: Money is Debt
Money can be used to purchase things now or saved to purchase things later. If individuals want to save their money to purchase things in the not too distant future, they can invest in what are known as cash equivalents. These include savings accounts at banks or money market mutual funds. Cash equivalents pay a little bit of interest while also having price stability in that the value of deposits varies little from day-to-day. Money Is Debt Backed By Debt Gary Gorton, Professor of … [Read more...]
218 Plus: Are You A Stock or Bond, Accredited Investors and Treasury Bills
This week August 25, 2018, we review whether entrepreneurs should have a different asset allocation than employees with steady jobs. We review whether new accredited investors should make changes to their investment strategy. Finally, we look at whether it makes sense to purchase individual U.S. Treasury bills. 218 Plus View and Listen To Other Plus Episodes Audio Download Download the audio file Transcript Download the transcript Welcome to Money For the Rest of Us Plus. This is Plus … [Read more...]
169: The Debt Ceiling—What Happens If the U.S. Defaults
What could happen if the U.S. Congress doesn't raise the debt ceiling and defaults on U.S. financial obligations. Photo by Augusto Navarro In this episode you’ll learn: What is the federal debt ceiling and why does Congress always wait until the last minute to raise it. How long has the debt ceiling been in place. What would be the consequences of default by the U.S. government on its obligations. Why does the government continue to run a budget deficit instead of a … [Read more...]
