Emil,

Here’s another comment that’s not on the spectrum between “backhanded compliment” and “ransom demand.” I think your essay is a very thoughtful one.

In holding securities with negative interest rates, banks are following the logic of their own circumstances. As you say, they view these not as investments but as collateral that enables them to lend. If they didn’t think they were assured of being bailed out, they might think differently.

You and I no doubt agree with Jim Grant that it’s a warped state of affairs when homo economicus is willing to accept less in the future in return for putting capital at risk today. It’s not natural and won’t last.

By the way, I’m still in suspense about Comment #6 above. Do we know what happened to Amyn and Sophia? Were they able to reconcile their differences over price theory and find happiness?