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Negative Interest Rates are Coming?
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
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
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.
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.