You can buy securities for $100!
Something more new for when I have to teach Monetary Policy.
The U.S. government lowered the minimum amount for buying Treasury securities to $100 from $1,000 in a plan to broaden the market to more individuals.
Treasury bills, notes, bonds and inflation-protected securities will be available to purchase in $100 increments beginning next month, the Treasury Department said yesterday in a statement.
“The new, lower minimum Treasury amount will put marketable securities within reach of more savers and investors in the United States and around the world,” Anthony Ryan, the assistant Treasury secretary for financial markets, said in the statement.
This is probably way too little, too late, but at least it is. One of the big, big differencees between Reagan’s debt and that of this government is that Reagan at least borrowed money from American households – meaning that, yes, American household wealth appreciated as budget deficits expanded.
Now? People eat their seed corn, tapping into home equity for cars and flat-screen TVs. No more govenrment savings, no more household savings. It will be interesting to see what sort of capacity ordinary households have to take advantage of this.