Negative Interest Rates are Coming?

serf

June 02, 2014 17:00

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

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  Waco Waltz

  June 03, 2014 01:06

  Some are predicting collapse by July.

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  serf

  June 05, 2014 12:34

  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.

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  11b6r

  June 05, 2014 17:55

  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.

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  wifetrained

  June 05, 2014 21:35

  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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