Let Them Eat Cake🍃 Treasury Bill
TL,DR: Like lettuce, lacking substance Treasury Bills / Lettucelacking substanceshort lifespansafe and mildly nutritiousEatamology “T-Bills” or “Bills” for short refer to the hard copy form of these bonds, which looks very much like a dollar bill, and which was created by President Hoover at the start of the Great Depression to raise money for the government when tax income dropped dramatically. The Department of the Treasury, a division of the Executive Branch (which is controlled by POTUS),...
Let Them Eat Cake🚶Who are you?
TL,DR: Choose suitable investments based on your goals and risk tolerance. “Pete Townshend was conflicted because he feared The Who had sold out, and seeing The Sex Pistols, who were icons of rebellion, exacerbated him even more. Pete left that bar and passed out in a random doorway in Soho (a part of London). A policeman recognized him ("A policeman knew my name") and being kind, woke him and told him, "You can go sleep at home tonight (instead of a jail cell), if you can get up and walk awa...
Let Them Eat Cake☀️ ESG
TL,DR: ESG designations are labels meant to indicate ethical products ESG | Organic, Non-GMO, Ethically SourcedLike organic, non-gmo, and ethically sourced marketing labels, ESG labels are applied when a company allegedly meets regulatory standardsCan be related to the product itself, or associated impacts from the productEatamology “ESG” stands for environmental, social, and governance. It’s a broad and sometimes subjective label that attracts investors concerned about outcomes and ethics in...
Helping future investors understand finance and crypto using digestible analogies. I hope you brought your appetite. Not a financial advisor
Subscribe to Let Them Eat Cake
Subscribe to Let Them Eat Cake
Helping future investors understand finance and crypto using digestible analogies. I hope you brought your appetite. Not a financial advisor
Let Them Eat Cake🍃 Treasury Bill
TL,DR: Like lettuce, lacking substance Treasury Bills / Lettucelacking substanceshort lifespansafe and mildly nutritiousEatamology “T-Bills” or “Bills” for short refer to the hard copy form of these bonds, which looks very much like a dollar bill, and which was created by President Hoover at the start of the Great Depression to raise money for the government when tax income dropped dramatically. The Department of the Treasury, a division of the Executive Branch (which is controlled by POTUS),...
Let Them Eat Cake🚶Who are you?
TL,DR: Choose suitable investments based on your goals and risk tolerance. “Pete Townshend was conflicted because he feared The Who had sold out, and seeing The Sex Pistols, who were icons of rebellion, exacerbated him even more. Pete left that bar and passed out in a random doorway in Soho (a part of London). A policeman recognized him ("A policeman knew my name") and being kind, woke him and told him, "You can go sleep at home tonight (instead of a jail cell), if you can get up and walk awa...
Let Them Eat Cake☀️ ESG
TL,DR: ESG designations are labels meant to indicate ethical products ESG | Organic, Non-GMO, Ethically SourcedLike organic, non-gmo, and ethically sourced marketing labels, ESG labels are applied when a company allegedly meets regulatory standardsCan be related to the product itself, or associated impacts from the productEatamology “ESG” stands for environmental, social, and governance. It’s a broad and sometimes subjective label that attracts investors concerned about outcomes and ethics in...
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TL,DR: Like a homegrown potato, tips are not subject to fluctuations in market prices
TIPS / Homegrown Potato
protected from fluctuations in market prices
costs a premium versus traditional potatoes
Eatamology
“TIPS” stands for Treasury Inflation Protected Securities, which are issued by the U.S. Treasury and offer protection from the rising cost of products due to inflation. Inflation comes from the Latin “inflatus” which means to blow up.
Financials
If you own a typical fixed coupon rate bond that pays 5% of of principal semi-annually, a period of inflation could instantly decrease the value of those payments. If the principal is $1,000 and the payments are 5% of that principal spread across 2 payments per year, then you are receiving $25 per payment. Maybe that was enough for a nice meal before inflation, but now it barely covers food not to mention tax and tip. TIPS protect against this risk, by adjusting the principal on the bond to match changes in inflation. If inflation increases by 2%, then the principal on your TIPS bond increases by 2% as well, and subsequently the interest payments based on the principal will also rise. Just like a consumer may pay a little extra to create their own supply of potatoes, an investor pays a premium for inflation protection when they buy a TIPS product. With the TIPS product on hand, they are now subject to the risk that inflation does not occur, and they paid for insurance that they didn’t need. In a deflationary or static environment, the consumer did all that work growing their own supply, but could’ve just as easily bought from a stable marketplace.
Nutrition Facts Price: Premium Issue Frequency: bi-weekly Maturity: Medium Interest/Coupon Amount: Low - Medium Coupon Type: Fixed or Floating Yield: Low - Medium Tax Status: Tax Exempt
TL,DR: Like a homegrown potato, tips are not subject to fluctuations in market prices
TIPS / Homegrown Potato
protected from fluctuations in market prices
costs a premium versus traditional potatoes
Eatamology
“TIPS” stands for Treasury Inflation Protected Securities, which are issued by the U.S. Treasury and offer protection from the rising cost of products due to inflation. Inflation comes from the Latin “inflatus” which means to blow up.
Financials
If you own a typical fixed coupon rate bond that pays 5% of of principal semi-annually, a period of inflation could instantly decrease the value of those payments. If the principal is $1,000 and the payments are 5% of that principal spread across 2 payments per year, then you are receiving $25 per payment. Maybe that was enough for a nice meal before inflation, but now it barely covers food not to mention tax and tip. TIPS protect against this risk, by adjusting the principal on the bond to match changes in inflation. If inflation increases by 2%, then the principal on your TIPS bond increases by 2% as well, and subsequently the interest payments based on the principal will also rise. Just like a consumer may pay a little extra to create their own supply of potatoes, an investor pays a premium for inflation protection when they buy a TIPS product. With the TIPS product on hand, they are now subject to the risk that inflation does not occur, and they paid for insurance that they didn’t need. In a deflationary or static environment, the consumer did all that work growing their own supply, but could’ve just as easily bought from a stable marketplace.
Nutrition Facts Price: Premium Issue Frequency: bi-weekly Maturity: Medium Interest/Coupon Amount: Low - Medium Coupon Type: Fixed or Floating Yield: Low - Medium Tax Status: Tax Exempt
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