It just isn't the same being a millionaire these days. Looking to park a stray million or two in a safe place in these uncertain times? Traditionally, Treasury Bills have been the preferred option for those wanting stability with a relatively small return. Until now.
As of yesterday the negative discount rate on T Bills went to .o1%, that is negative as in "I will pay you to hold onto my money for me". Let's put this in everyday terms. Imagine our hapless millionaire looking for a place other than under his mattress to stow a million. He goes to Uncle Sam and says Hey Sam here's a million to invest as you see fit or to pay down your debt or build a new plane or whatever please hold onto it for three months and pay me in interest what you think is fair. Three months later said millionaire comes back to Sam and says "Hi" I'd like my million back plus whatever you think is fair in interest and Sam says actually you owe me $25.56 for my trouble holding on to and investing your million, please remit. So yes the wealthy are willing to actually lose money to at least keep it in a safe place. It is safe there because even should Uncle Sam go on a complete Romanesque orgy like drunken spending binge all he has to do is print more money and he's good to go. Life's good.
In conclusion this does beg the question. Why are the wealthy willing to put their money where it does nothing for them, in fact actually realizing a slight negative return? As a general rule those that succeed and thrive in capitalism have not done so by being stupid or making ill advised business decisions. Why don't they put it in the market? Or in separate interest bearing bank accounts? Money Market? Market based Muny's?
We're not talking about a few crazy kids just looking to park a million dad left them or something like that. The Treasury sold $32 Billion worth of these negative discount bills yesterday, Tuesday. Why did 32,000 millions get put in an "investment" position where they would earn their owners NOTHING?
Things that make you say "hmmmm...."