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Negative Interest Rates are Coming?

serfserf Member Posts: 9,225 ✭✭✭✭
edited June 2014 in Politics
And we thought Greece was only where the Golden Fleece was at! [:o)] Now It's The Central banks last stand in the temple? Coming soon to Amerkia you think?

serf

http://abcnews.go.com/International/wireStory/europe-weighs-risks-negative-interest-rates-23959623

But things are now bad enough that many analysts think Draghi and the 23 other members of the ECB's governing council will try the step Thursday and cut the deposit rate from its current record low of zero, perhaps with a rate of minus 0.1 percent. The ECB is also expected to trim its main interest rate, at which it lends to banks, from 0.25 percent to as low as 0.1 percent

Comments

  • Waco WaltzWaco Waltz Member Posts: 10,828 ✭✭
    edited November -1
    Some are predicting collapse by July.
  • serfserf Member Posts: 9,225 ✭✭✭✭
    edited November -1
    It just happened and our Stock Market rallied to a new record over here!

    Hot money inflating prices until it pops and crashes! It's joke as the money magicians play the Central Bank game with the monopoly!

    serf
    http://www.economist.com/node/260590

    Privately issued electronic money could one day complicate or even nullify central banks' ability to set interest rates. Central banks are not about to vanish overnight. But, like the Kremlin, they may not retain their pre-eminence forever.
  • 11b6r11b6r Member Posts: 16,725
    edited November -1
    Got news for ya- we ALREADY have "negative interest rates".

    If the bank pays 1% (try to find one that high) on savings, but inflation is 5%, after 1 year, you have had a -4% yield.
  • wifetrainedwifetrained Member Posts: 1,144 ✭✭✭
    edited November -1
    That's the ECB's answer to a stagnant, possibly deflationary, economy. We'll penalize the banks to force them to lend and spend.
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