Zero Percent Yield

Investors now want zero yield investments. From the NY Times is the article on the US government selling bonds with a 0.0% yield. Cheap way to fund the deficit, but not a good sign for economy.

Investors accepted the zero percent rate in the government’s auction Tuesday of $30 billion worth of short-term securities that mature in four weeks. Demand was so great even for no return that the government could have sold four times as much.

In addition, for a brief moment, investors were willing to take a small loss for holding another ultra-safe security, the already-issued three-month Treasury bill.
...
“The last time this happened was the Great Depression, when people are willing to accept no return on their money, or possibly even a negative return,” said Edward Yardeni, an independent analyst. “If people are so busy during the day just protecting the cash they have, it’s not a good sign.”

Part of me screams "Quick refinance the whole US Government debt!" That part is looking for the metaphorical lemonade.

Sobbering Read

The following article is about the next financial crisis after this one.
Call this a crisis? Just wait from Fortune magazine.