Negative interest rates are coming! You want to know more about them! | |
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Anonymous Coward User ID: 76785444 United States 08/14/2019 12:18 PM Report Abusive Post Report Copyright Violation | That means no business would be dumb enough to give loans. Negative interest rates are sure way to devalue most things that are inflated due to the availability of financing. This would never happen. It would be worse than letting the economy go into a recession. |
niphtrique
(OP) User ID: 77025818 Netherlands 08/14/2019 12:35 PM Report Abusive Post Report Copyright Violation | As bizarre as it may seem, this is already happening in Europe... [link to www.theguardian.com (secure)] And the super rich may end up paying for it... [link to www.theguardian.com (secure)] |
niphtrique
(OP) User ID: 77025818 Netherlands 08/14/2019 12:38 PM Report Abusive Post Report Copyright Violation | There are 15 trillion worth of bonds already yielding negative. [link to www.cnbc.com (secure)] This is epic. The economy will not collapse if there is no floor on interest rates. Last Edited by niphtrique on 08/14/2019 12:39 PM |
jj johns
J to the 3rd User ID: 77893365 Switzerland 08/14/2019 12:45 PM Report Abusive Post Report Copyright Violation | |
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Anonymous Coward User ID: 76807523 United States 08/14/2019 12:49 PM Report Abusive Post Report Copyright Violation | As bizarre as it may seem, this is already happening in Europe... [link to www.theguardian.com (secure)] Wow "In Switzerland, the bank UBS last week told its wealthy clients that it would introduce a charge of 0.6% a year if they deposited more than €500,000." |
Anonymous Coward User ID: 77726703 United States 08/14/2019 12:53 PM Report Abusive Post Report Copyright Violation | we have had negative real interest rates since 2008 [link to www.valuepenguin.com (secure)] Negative real interest rates If there is a negative real interest rate, it means that the inflation rate is greater than the nominal interest rate. If the Federal funds rate is 2% and the inflation rate is 10%, then the borrower would gain 7.27% of every dollar borrowed per year. Real interest rate - Wikipedia [link to en.wikipedia.org (secure)] |
Anonymous Coward User ID: 77726703 United States 08/14/2019 12:54 PM Report Abusive Post Report Copyright Violation | we have had negative real interest rates since 2008. Negative real interest rates If there is a negative real interest rate, it means that the inflation rate is greater than the nominal interest rate. If the Federal funds rate is 2% and the inflation rate is 10%, then the borrower would gain 7.27% of every dollar borrowed per year. Real interest rate - Wikipedia [link to en.wikipedia.org (secure)] [link to www.valuepenguin.com (secure)] |
Anonymous Coward User ID: 77919545 United States 08/14/2019 01:01 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 75919805 Canada 08/14/2019 01:06 PM Report Abusive Post Report Copyright Violation | we've actually had this in a partial form ever since the banks invented "service charges" you pay service charges to spend your money: - fee for a money order - fee for a bank draft - fee for a wire transfer - over the monthly transaction limit transaction fees - you pay a service charge to use the "wrong" ATM - most bank accounts have a monthly fee for having the account - etc. |
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SilverCyprus
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Anonymous Coward User ID: 77549932 United States 08/14/2019 01:14 PM Report Abusive Post Report Copyright Violation | My uneducated opinion is to hold precious metals preferably minted by the government that you live in as they are usually valued at face. Quoting: Anonymous Coward 77919545 Might come in handy with da taxes. Where would store them? Do you have the securities to protect your asset or in the end, under such such policy the government would require you to turn them in for their protection. I don't mean in a nice way. |
Anonymous Coward User ID: 75801884 United States 08/14/2019 01:15 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 77549932 United States 08/14/2019 01:22 PM Report Abusive Post Report Copyright Violation | And how can the average joe use these negative rates to their advantage? Quoting: Anonymous Coward 75801884 Any financial wiz out there??? Have no answer for a whole lifestyle, but key points are: 1. Cash, physical gold... is the way to save as bank would charge fee for you to use your money. 2. The down side is you can only spend what you have. Your credit is useless, as bank, bussinesses ain't very happy to loan their money out. Negative interest means distrust in credit system. |
Anonymous Coward User ID: 77726703 United States 08/14/2019 01:24 PM Report Abusive Post Report Copyright Violation | And how can the average joe use these negative rates to their advantage? Quoting: Anonymous Coward 75801884 Any financial wiz out there??? Borrow as much as possible and spend it NOW on investments that will return more than inflation steals. And make minimum payments or defer for as long as possible. the longer you wait to pay the less value that money will have. |
Anonymous Coward User ID: 77549932 United States 08/14/2019 01:28 PM Report Abusive Post Report Copyright Violation | And how can the average joe use these negative rates to their advantage? Quoting: Anonymous Coward 75801884 Any financial wiz out there??? 3. These in turn means people should live within their mean (what they can produce and possess). Only the thing that they need. Theoreticallly, it's a healthy lifestyle. Unfortunately, sound like a red flag for something big and sinister incoming as TPTB ain't going to allow that. |
Anonymous Coward User ID: 77831398 United States 08/14/2019 01:30 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 77895588 United States 08/14/2019 01:32 PM Report Abusive Post Report Copyright Violation | Ur a retard! Ordinary people spend on gas, food, bills! Caps WASTE money chasing profits! They charge extra to ordinaries to fuel their chase. What u call ordinary are military and overpaid IT and medical sectors. All Capitalists think about is getting these overpaids money! This game is to the detriment of TRUE ordinaries! We eek by on 50k hoping and praying for a CRASH! |
Rosicrucian1 User ID: 77892559 Canada 08/14/2019 01:32 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 77918942 Ireland 08/14/2019 01:35 PM Report Abusive Post Report Copyright Violation | As bizarre as it may seem, this is already happening in Europe... [link to www.theguardian.com (secure)] And the super rich may end up paying for it... [link to www.theguardian.com (secure)] That sounds good - and I've got a tracker mortgage, which they've stopped doing now. This means my rate is tied to the ECB (European Central Bank) rate. |
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