Negative interest rates

Outside The Beltway
1

Would like to keep this non political if possible lol. I was reading were a number of European countries banks were going negative interest rates with even a 30 year negative interest bond. What is keeping the people from running on the banks? Unless I misread something it sounds as if you are basically paying the banks to hold your money.

It gets even weirder they have mortgages in Denmark with negative rates that the bank pays the borrower. How is this sustainable long term? It sounds like the ultimate situation for the gold bugs.

2

Flash forward to 2023 and the market is holding at 89,100 level while waiting to see if the FED cuts rates from -16% to -16.5%.

2 Likes
3

Seriously though what I am I missing why are they not a run on the banks? This was from a yahoo article. Japan, Germany, Denmark, etc…

What if I said I wanted to borrow $100 from you and pay you back $99 five years later? Would you do it?

Hell no!

4

Depends on inflation and what you think alternative places to put your money will do.

5

I’m buying gold.

6

I’m buying palladium.

7

I am buying Vibranium.

8

That’s risky.

9

We must keep spending to keep the greatest ponzi scheme of all time alive

10

Isn’t this like the perfect case for gold? All I can see to add is zombies. Maybe alt coins? I mean we still have the stock market for what it’s worth.

11

I can hardly think of a better scenario

12

It’s had a good run even passed gold at at time. Platinum on the other hand has been crushed.

13

I literately thought that was an alt coin until I googled it :wink:

1 Like
14

I understand why they would do it in terms of not letting the debt grow more than it has to and to get people spending. But I still ponder what would keep people from taking their money out of the bank if enough of that happened at once it would be very very bad.

1 Like