The man manages $95 billion, was inspired to become a money manager living in a hovel while watching Lifestyles of the Rich and Famous, and has outperformed 99% of his peers.
What the fuck have you done lately?
If you enjoy the content at iBankCoin, please follow us on Twitter“The negative interest rate experiment seems to be backfiring,” said Gundlach, who helps oversee $95 billion for Los Angeles-based DoubleLine. “The best evidence of negative interest rates backfiring is the yen versus the dollar and the Nikkei.”
The dollar was last down 1.4 percent at 108.01, its biggest daily percentage drop in two months. The decline put the greenback’s losses at about 10 percent for the year.
Gundlach said: “Negative interest rates are not just deflationary, they are deflation. You lose money.”
Jeff is not only high IQ-ish, he also likes jazz and antique gold coins.
Central Banks are crossing a line, and some don’t realize it because they think it has already been crossed with limited consequences.
Many people think any negative interest rate at all is the line, but that’s not quite true. It is still cheaper (for large amounts of money) to pay 0.10% interest than to go into cash and have someone guard it or to buy depreciating assets. -0.10% at the CB, means even lower rates at the banks. However, if you go far enough negative, then cash becomes a viable option, depositors pull their cash, and deflation hits like a ton of bricks.