Negative Interest Rates a Growing Concern

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crossnote

crossnote

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#1
Nov 24, 2012
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Janet Yellen and 'negative interest rates': America, this is the last nail in a saver's coffin | Fox News

This sounds like an ominous trend...already happening in parts of Europe.
Essentially you pay the bank as they 'hold' your money.

But the major concern I have is that all these financial schemes come at the expense of Main Street. Negative interest rates may start out just affecting certain bank deposits at the Federal Reserve. But eventually banks will pass on their costs to depositors…which means negative interest rates for average folks. So unless you invest in the stock market, or take all your money and stuff it in your mattress, you’ll be paying a bank to hold your cash.
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Billyd

Billyd

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#2
May 8, 2014
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crossnote said:
Janet Yellen and 'negative interest rates': America, this is the last nail in a saver's coffin | Fox News

This sounds like an ominous trend...already happening in parts of Europe
Essentially you pay the bank as they 'hold' your money.
Click to expand...
Oh for the good ole days, when taxes were high, and I could get 10% on my CDs or 7% on Savings Bonds. My bank offered .89% and told me it was a good deal. I guess that is what we get when we want cheap loans. All these cheap loans have led to is the largest debt load (public and private) the most unstable investment markets ever.

Don't get me wrong. There is money to be made, but it takes a lot more work. Contrary to popular belief, the sky isn't falling.
 
crossnote

crossnote

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#3
Nov 24, 2012
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Billyd said:
Oh for the good ole days, when taxes were high, and I could get 10% on my CDs or 7% on Savings Bonds. My bank offered .89% and told me it was a good deal. I guess that is what we get when we want cheap loans. All these cheap loans have led to is the largest debt load (public and private) the most unstable investment markets ever.

Don't get me wrong. There is money to be made, but it takes a lot more work. Contrary to popular belief, the sky isn't falling.
Click to expand...
I think Murphy's law is in play here. When you're broke interest rates are high; when you have a few dimes rates plummet below the cellar :mad:.
 
Billyd

Billyd

Senior Member
#4
May 8, 2014
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crossnote said:
I think Murphy's law is in play here. When you're broke interest rates are high; when you have a few dimes rates plummet below the cellar :mad:.
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Time seems to agree with you. The first dollar I invested, I earned 7%. Today, my checking account pays me the same as the bank offers on CDs. Thank God for great financial advisers.
 
PennEd

PennEd

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Apr 22, 2013
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crossnote

crossnote

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Nov 24, 2012
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PennEd said:
Step one. Create negative interest rates thereby forcing people to withdraw their money. Step 2. Regulate how much cash can be spent on transactions. Step 3. Outlaw cash

I think we all know what steps 4 and 5 will bring.
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Geesh, i had a feeling there was something ominous about it all.
 
PennEd

PennEd

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#8
Apr 22, 2013
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crossnote said:
Geesh, i had a feeling there was something ominous about it all.
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Just like how the negative interest rates started in Europe, and Japan, cash restrictions will eventually find it's way here:

[h=1]Cash Restrictions to Combat Terrorism on EU Ministers' Agenda[/h] Rebecca Christie rebeccawire


February 11, 2016 — 4:07 AM EST
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  • Draft conclusions for Friday meeting seek report by May 1
  • ECB could scrap 500-euro note by 2020, Bruegel's Veron says

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European Union finance ministers will call for a new look at whether cash limits could help the fight against terrorism financing, according to draft conclusions for a meeting on Friday in Brussels.
Ministers are calling on the European Commission “to explore the need for appropriate restrictions on cash payments exceeding certain thresholds and to engage with the European Central Bank to consider appropriate measures regarding high-denomination notes, in particular the 500-euro note,” according to the draft, obtained by Bloomberg News. They’ll ask for findings no later than May 1, the draft says.
The outline also asks the commission to submit “targeted” amendments to existing anti-money laundering rules as soon as possible and no later than by mid-2016, and ministers also seek a proposed update to the EU’s cash controls regulation by the fourth quarter of the year.

The 28-nation EU has stepped up its efforts to close financing channels for terrorists in the wake of last year’s attacks that left 130 dead in the streets of Paris. EU ministers have urged nations to follow through on pledges to exchange more financial intelligence information, and the draft conclusions for Friday’s meeting calls for “immediate establishment” of an EU platform where countries could pool public information on terrorism-related asset freezes.
Big bank notes are an “important but not urgent” issue for the ECB, Nicolas Veron, an analyst at the Brussels-based Bruegel think tank, said in an e-mail. He said the central bank should announce plans to scrap the 500-euro note by about 2020, followed by the 200-euro note in 2025.

 
prove-all

prove-all

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#9
May 16, 2014
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PennEd said:
Step one. Create negative interest rates thereby forcing people to withdraw their money.
.
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but the last thing they want is a run of people withdrawing all there money

that would trigger a collapse of the banks alltogether
 
PennEd

PennEd

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#10
Apr 22, 2013
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prove-all said:
but the last thing they want is a run of people withdrawing all there money

that would trigger a collapse of the banks alltogether
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True, but if you want to build a completely different house than the one already present, you FIRST have to tear down the existing one.
 
crossnote

crossnote

Senior Member
#11
Nov 24, 2012
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PennEd said:
True, but if you want to build a completely different house than the one already present, you FIRST have to tear down the existing one.
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YIIIIKKKEESSSS!!! :)

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