1941

this was the last time we saw yields on 3-month treasury bills as low as we saw them today. how low? how does .02% sound?

so why are t-bills so low? supply and demand, baby. everyone is afraid to put their money anywhere that isn't "safe" and what is considered "safe" has shrunk to precious little -- so everyone piles into t-bills and the yield drops like a rock.

remember investments we used to think were safe? blue chip stocks, money market funds, and even fdic-insured savings accounts? people are in a panic and the next thing (which we need to avoid at all costs) is a run on the banks to withdraw funds and hide them in mattresses, flower pots, cookie jars, whatever.

markets move with herd psychology and the herd is pretty damn spooked. this is the time to stop -- think -- and NOT do what everyone else is doing.

in 1941 things looked pretty bleak too. the next few years will be tough, incredibly tough for some -- but we will get through it.