Courtesy of Mish.
Rudy Havenstein Tweeted an interesting chart earlier today on real negative interest rates.
I recreated the chart below and also share a chart from Doug Short on real median incomes to help put this financial repression by the Fed in proper perspective.
Decade of Negative Real Interest Rates
The above chart was created by taking the short-term treasury bill rate and subtracting the year-over-year rate of inflation as measured by the CPI.
A massive housing bubble formed in the first period real interest rates were negative. In the current prolonged period of negative rates, bubbles formed in the stock market and bond markets globally.
Outside the US, nearly three quarters of the world’s bond traded at negative interest rates.
Doug Short at Advisor Perspectives updated his series of charts on Median Household Income earlier today.
