They have learned by example..................
Posted on 06/05/2014 7:11:56 AM PDT by SeekAndFind
The European Central Bank launched a raft of measures on Thursday to fight low inflation and boost the euro zone economy, cutting rates, imposing negative interest rates on its overnight depositors and offering banks new long-term funds.
The ECB cut all its main rates to record lows in a drive to fight off the risk of Japan-like deflation and bring down the euro's exchange rate. For the first time, it will charge banks 0.10 percent for parking funds at the central bank overnight.
It stopped short of large-scale asset purchases known as quantitative easing for now, but ECB President Mario Draghi said more action would come it necessary.
(Excerpt) Read more at reuters.com ...
They have learned by example..................
The question is, if putting your money in the bank results in a -0.1 loss of your capital ( not including inflation ), where’s the incentive to save?
But the next question is, if you can’t pit money in a bank, what are the alternatives?
Well to do people who do not want to invest in stocks and bonds, will buy hard assets such as property, precious metals, farmland, expensive artwork, wines, and antiques.
Stock market, bonds, munis, Vegas, Lotto....................
Not to mention drug dealing, pimping and scams of various sorts...............
This has been going on for so long now that there's going to be at least a generation totally unprepared financially for retirement, and not having the pensions and 401Ks to supplement their Social Security checks.
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