Negative interest rates

Posted by Robbie53024 10 years, 10 months ago to Economics
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Now the EU banks have to pay to hold money.

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  • Posted by $ brd76 10 years, 10 months ago in reply to this comment.
    Absolutely. Certainly no bank will feel pressured to lend so fast that scrutiny over people's ability to repay their debts will be overlooked.... Those who ignore history are doomed to repeat it. I for one see fiat collapse in the future and pandaoniun ensue because the masses have no idea of an alternative to this Monopoly money Ponzi scheme they've been sold down the river to.
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  • Posted by Robbie53024 10 years, 10 months ago in reply to this comment.
    Nope - would just create instant inflation, at which point things would go back to stability just with higher prices. No nation has ever printed it's way to prosperity - in fact, the only result has been ruination, eventually.
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  • Posted by Robbie53024 10 years, 10 months ago in reply to this comment.
    Not technically. That's just erosion. When you have to pay someone to keep your money there, that's negative interest.
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  • Posted by preimert1 10 years, 10 months ago
    Isn't holding on to your money while inflation eats away at its value the same as negative interest?
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  • Posted by $ jbrenner 10 years, 10 months ago
    I didn't even think this was possible. Negative interest rates?!?!
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  • Posted by Robbie53024 10 years, 10 months ago in reply to this comment.
    Oh, I disagree. The banks are being penalized for keeping money, so they will lend it out to anyone wanting it. (unless that was sarcasm, in which case - using my best Emily Littela voice - Nevermind).
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  • Posted by khalling 10 years, 10 months ago
    this will certainly keep bad loans from happening...
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