Moneysavingyourmoneyincreasinglyseenbygovernmentsasbeingbad

Wed Nov 11, 2015, 10:56 AM

Now, saving your money for a rainy day considered financially "evil" and punishable by government...

Negative Interest Rates the New Normal Next Time Economies Slump

Now that Sweden and Switzerland have shown that negative benchmark interest rates don’t necessarily result in flights to cash, asset bubbles or banking strains, the global giants of central banking may be more willing to embrace sub-zero borrowing costs the next time their economies slide.

There’s a very real chance unorthodoxy becomes the new orthodoxy,” said Alan Ruskin, global head of Group-of-10 currency strategy at Deutsche Bank AG in New York. While financial markets are focused on the Federal Reserve’s looming rate increase, policy makers and economists are already changing their attitude toward negative rates.

European Central Bank President Mario Draghi is open to reducing the rate he charges banks to leave money in his coffers overnight further into negative territory. Bank of England Governor Mark Carney has also revised his thinking to say the U.K. benchmark could fall below 0.5 percent if needed having previously worried deeper cuts would roil money markets.

Meantime, Fed Chair Janet Yellen said last week that “if circumstances were to change” then “potentially anything, including negative interest rates, would be on the table.” One of her policy-setting colleagues has already advocated them for next year.

http://www.bloomberg.com/news/articles/2015-11-11/negative-interest-rates-the-new-normal-next-time-economies-slump

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Reply Now, saving your money for a rainy day considered financially "evil" and punishable by government... (Original post)
Gamle-ged Nov 2015 OP
exindy Nov 2015 #1
nolidad Nov 2015 #2
exindy Nov 2015 #3
nolidad Nov 2015 #7
Juan Rico Nov 2015 #4
exindy Nov 2015 #5
Juan Rico Nov 2015 #6

Response to Gamle-ged (Original post)

Wed Nov 11, 2015, 11:02 AM

1. The Fed is the banks, not the gov't.

My opinion is that the economic policies of the US should be made in the best interests of the US -- not the banks.

Iceland learned their lesson.

Negative interest rates being talked about here have nothing to do with your savings. Your bank determines the rate you will receive. You have a problem with that, find a different bank.

What this "idea" is is nothing more than a faster run at that trickledown wall in hopes that there's a pot o' gold on the other side.

The American people are the battering ram, not the people holding the ram.

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Response to exindy (Reply #1)

Wed Nov 11, 2015, 11:19 AM

2. We agree on something!!!

The last 7 years have seen the wall street fat cats grow richer than at any other time in our history.

The common folk have lost trillions while the admin. catered to their donor base on wall street.

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Response to nolidad (Reply #2)

Wed Nov 11, 2015, 11:21 AM

3. We agree on the problem.

Where we differ is the solution.

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Response to exindy (Reply #3)

Wed Nov 11, 2015, 02:37 PM

7. Can't say

I don't know what you propose as a solution.

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Response to Gamle-ged (Original post)

Wed Nov 11, 2015, 11:40 AM

4. Why in the world would anyone keep money in an account which charges negative interest?

You'd be better off putting it under your mattress.

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Response to Juan Rico (Reply #4)

Wed Nov 11, 2015, 11:47 AM

5. Ahh, read it again.

This is talking about the rate the fed is charging the banks for the use of OUR money.

The fed thinks the economy would be better if we paid the banks to borrow our money.

That's cause the fed is the banks.

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Response to exindy (Reply #5)

Wed Nov 11, 2015, 11:53 AM

6. Hmph. That'll teach me to just skim rather than read the whole thing.

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Moneysavingyourmoneyincreasinglyseenbygovernmentsasbeingbad