Negative ya!
Posted on 03/18/2015 10:15:40 AM PDT by C19fan
Sweden's central bank took its key interest rate further into negative territory Wednesday in a surprise move aimed at supporting a return to inflation.
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Sweden cuts key rate again to record minus 0.25 pct Associated Press India's central bank cuts key interest rate Associated Press German central bank: ECB stimulus means less reform pressure Associated Press European Central Bank leaves rates unchanged; await QE details MarketWatch The currency wars have begun MarketWatch The Riksbank cut its repo rate by 0.15 percentage points to -0.25 percent and said it was buying government bonds worth 30 billion kronor ($3.4 billion, 3.2 billion euros) to prevent an appreciating krona from hindering an uptick in inflation.
(Excerpt) Read more at news.yahoo.com ...
I wonder if they’ll refinance my mortgage...
Sounds like Japan!
The Central banks are quickly running out of Ammo.
The cost of money is now FREE, yet the global economy continues to slow.
All of the conditions that existed leading up to the Lehman collapse are still out there, all they have done by emptying the treasuries and handing the Oligarch’s trillions, is to delay the inevitable.
They might!
Payback in dollars vs kroner!....................
So why would anyone pay the Swedish central bank to hold their money?
It’s only FREE to the banks not to the account holder or borrower. Now it costs to keep your money in the bank as well as to take a loan.
I think these kind of things apply to something like local banks. The central bank loans member banks money. If member banks sit on that money instead of loaning it to customers, the central bank charges the member bank ‘negative interest’. Goofy accounting gimmicks, but the idea is to make it easy for end users to borrow money.
In the US and Eurozone economies, the huge consumer and real estate spending that produced the economic booms of the ‘80’s and 90’s brought about by the Baby Boomers is winding down. The baby boomers created bubbles everywhere; overbuilt schools in the 60’s and 70’s, money flooding growth investments in the 90’s and 00’s, all of the gadgets and stuff that filled the McMansions of the ‘80’s and ‘90’s are no longer needed by the empty nest retirees. Two cars go to one, the 4 bedroom 3 bath colonial goes to the 2 bedroom condo or country cottage, and snappy new suits and ties are not needed for a day watching the Weather Channel.
The only growth industries left in the US and Eurozone economies is health care and senior living centers. If businesses are still trying to get people in their 60’s and 70’s to spend like they did when those people were in their 30’s and ‘40’s, they are making a fools bet. There is your deflation and there is not a damned thing any central bank can do to stop it.
Which is why there’s a push for illegals. They’ll buy stuff.
Where else are they going to keep it. Still better than the alternative of acquiring and putting billions of bank notes into a vault.
They’ll get it back.
Seriously, where else are you going to park billions of dollars (or equivalent in whatever currency) with maximum assurance of getting it back, and fast? Paying a relative pittance to preserve cash wealth is worth it.
Negative ya!
illegals consume more tax dollars than they spend.
Excellent. It doesn’t work so let’s do more of it.
Cool story bro, and I appreciate the attempted hijack...
The landscaper getting $2hundo a week can only buy so much. That is sure not as much as the insurance salesman getting $80k a year was buying for himself, his wife, and family. Now that his “family” is just the wife, he still has the ability to buy more, he just does not want to or need to.
The low interest rates are causing the problem. Prices are not being allowed to reset to a lower number.
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