patrick.net

http://danielamerman.com/course/a/npFOURTEENaz.html

Good article with a couple of critical points:

1. Negative interest rates do not mean that the lender pays the borrower. It means that the Fed is going to buy existing bonds at prices that result in a loss for the Fed. Prices that add up to more than the face value of the bond plus all future interest payments.

2. This loss for the Fed means big profits for the holders of existing bonds.

3. Resulting in "hundreds of billions of dollars in profits going disproportionately to insiders - at the expense of the general public".

The bailout is a huge transfer of wealth to bond holders at the expense of taxpayers.

But maybe buying government bonds now is a good idea, so that you can take part in the unfair profits which will be given to bond holders.