Banks are seriously discussing negative interest rates for normal people's savings

Business Insider ^ | 10/24/2015 | Jim Edwards

[eyeamok]

the more deposits they have, the more they can lend it to others” ???

Banks have NOT OPERATED like that since 1971, this guy is an IDIOT or just a a plain LIAR.

When you borrow money from a bank, the MONEY does NOT EXIST. The Fed gives them instant credit for the Promissary Note or Trust Deed you SIGNED. and the MONEY is CREATED OUT OF THIN AIR on the SPOT to meed the demands of said LOAN.

[SeekAndFind]

re: Well when that happens I`ll no longer have a bank account.

That’s exactly the plan. They want you to USE IT.

[central_va]

Food was up 1.6%

I just paid $12/pound for steak yesterday.

[Sirius Lee]

Credit unions. Most of the banks should have been wiped out 8 years ago. The looters treated the symptoms but not the economic disease.

[central_va]

Why is there a 4% spread between the Feds interest rate -0%- and the 30 year mortgage? Why can’t I go to the Feds and get some at 0% too?

[SeekAndFind]

RE: Why can’t I go to the Feds and get some at 0% too?

Here’s a solution for you — Form a bank :)

[expat_panama]

Considering the fact that bond buyers are already buying T-bills w/ NO interest and also pay all the taxes/fees/commissions, we need to accept the reality that we are already in a time where:

• --interest rates in general have fallen to the lowest they've been in decades,
• --T-bills are at the lowest they've been in 3/4 of a century,
• --some measurements of inflation are negative.

Another reality is that most posts on these threads are all about how we feeeel like we got run away inflation (related threads: The US is on a fast track to deflation, Big Banks to America’s Firms: We Don’t Want Your Cash).

[expat_panama]

Why can’t I go to the Feds and get some at 0% too?

Here’s a solution for you — Form a bank :)

--or easier still buy an existing bank.  You can own Bank of America for just $16.53 --just 4 years ago it was only $5.17! 

[GailA]

I Can’t draw mine out until I turn 72.5, that is 5 yrs away.

Hubby takes the bare minimum the government makes him take out as he is 75. We plow that back into the new house instead of blowing it. This last year we used it to replace the 12 yr old insufficient 40 gal hot water tank with a tankless unit.

When we sold the old house we financed it ourselves for the VA rate, after the couple passed the VA loan process, VA wanted to many unneeded very costly upgrades. They didn’t want or need. And we didn’t want to do. That gets put into the new house too. So we will pay off a 30 year loan in roughly 12 yrs at the rate we reinvest extra money. Cuts the interest way down.

It then becomes a tax trade off with net 0 effects.

[TribalPrincess2U]

If that's the case, then what will folks do when there's no electricity or internet?

[amorphous]

In a cashless society, I don’t know what people would do with no internet or electricity. Do you?

[TribalPrincess2U]

Go back to snail mail/horse mail? Slaves would need no money.

i’m sure someone is working on it. I do not know.

[amorphous]

It’s something to consider. Already, if we lose electrical grid and internet, millions could die if for an extended period.