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| Europe |
| European Central Bank wants negative interest rate |
| 2014-06-06 |
| h/t Gates of Vienna Banks typically make money on the cash they park at a central bank. Now the European Central Bank wants them to pay for the privilege. |
| Posted by:g(r)omgoru |
| #10 Watch as your savings approach the Singularity! |
| Posted by: Shipman 2014-06-06 15:34 |
| #9 "We offer I % savings. Imaginary number returns for imaginary savings" |
| Posted by: Frank G 2014-06-06 15:05 |
| #8 It means on Day 1 a Dollar buys 10 fishhooks Day 10 a Dollar buys 5 fishhooks Day 100 1 fishhook buys an iPad |
| Posted by: Shipman 2014-06-06 14:53 |
| #7 The next step is negative money. I don't know want to find out what that means. |
| Posted by: Anguper Hupomosing9418 2014-06-06 14:41 |
| #6 This is about banks storing money at the central bank. Take note that some of the banks bailed out in the great 2008-9 looting of America (cause all that bad paper was not backed by the 'good faith' of the government, but was made so by the pols at the behest of their campaign contributors), involved many Euro banks who had invested in the American speculative market (re:housing bubble) because they couldn't get proper returns at home (see - socialism). Banks got burned. Now they've reverted to the old program of avoiding risk. Part of risk is investing. If the market is weak, if it is subject to the flight of fancy of pols, if it is non-predictable, the money will seek shelter. The central bank was been that port in the storm. Now the pols, through the central bank, are pushing banks to use that money. The same pols that make the regulations and taxes that diminish any return on investment. So, the point where line x crosses line y is being determined on where the loses are going to be less, those monies in the market or those monies effectively taxed stored in the central bank. The stupidity is making loses the determining factor rather than gains. |
| Posted by: Procopius2k 2014-06-06 12:49 |
| #5 Somehow I don't think this plan will work. |
| Posted by: DarthVader 2014-06-06 12:03 |
| #4 If people put it under their mattress, that money can be stolen or burned up. They'll move it offshore, I figure. |
| Posted by: gorb 2014-06-06 12:01 |
| #3 If they will not pay people for savings, the people will not save, (Not At their Bank, under the mattress maybe.) |
| Posted by: Redneck Jim 2014-06-06 10:09 |
| #2 When the economy is so bad that parking money at the Central Bank is preferred, you might just take that as the invisible hand of commerce telling you that your economic system is seriously screwed up. Guess its better to tax people trying to protect their money than to tell the people who extort the system via political power to fix the system to encourage that money to be invested. Cause fixing would involve ripping and shredding laws and programs that appeal to those who never created the resources but who want them. see - thou shall not covet, thou shall not steal. |
| Posted by: Procopius2k 2014-06-06 08:36 |
| #1 Sounds like the vault at the ECB has become a 'no parking zone'. (Give 'em money, they just blow it.) Move along, nothing to see here... |
| Posted by: ed in texas 2014-06-06 07:28 |