Why Cambridge is Smart
October 11th, 2012
When will the U.S. Treasury get smart? I’ve been urging the Obama administration to issue 100-year bonds to lock in today’s ridiculously low interest rates. Who would benefit most? Our children and grandchildren. Now comes Cambridge University (one of my alma maters) auctioning off $560 million 40-year bonds and paying just 3.86%. Cambridge has produced Isaac Newton and Stephen Hawking, but it doesn’t take a rocket scientist to see a bargain. Keynes was a Cambridge man, too. If he were still around, he too would be protesting the U.S. Treasury and telling its leaders they could learn a lesson from a university that’s survived a few business cycles over its 800 year history.