Courtesy of Mish.
Economic madness continues nonstop. In the race for safe havens Nestle Bond Yield Falls Below Zero
Nestle’s short-term euro-denominated bond yield has fallen into negative territory, possibly marking the first time in history that a corporate bond maturing in more than a year has had a negative yield.
Alberto Gallo of RBS points out that if eurozone companies and governments continue to issue debt at the same pace, then the euro-denominated bond market will actually start to shrink once the ECB starts buying, given that its purchases will outstrip monthly supply of debt.
Privilege of Lending Gone Mad
Yes indeed folks, you can can now pay Nestles for the privilege of lending it money.
In honor of this historic event, I offer this 1950s historical tribute.
Link if video does not play: 1950’s Nestle’s Quik w/Jimmy Nelson, Danny ‘O Day, and Farfel TV commercial snippet
Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com
