I work for a very large international bank. Negative Interest Rates have been in the works for well over a year, dating back to when Cyprus banks raided their depositor's bank accounts and IIRC Greece did/considered doing the same thing.
We raced to modify our software systems to enable negative rates, completing that work about 6 months ago now.
I'm telling you all, the Federal Government is so hungry for YOUR MONEY negative interest rates WILL BE IMPLEMENTED at some point. Federal Government's hunger for your money is insatiable, and they genuinely believe negative interest rates will force consumers to SPEND and boost the economy.
You've all been warned.
“That lack of economic activity despite the cheapness of lending is exactly what is holding the economy back.”
The reason people are not spending money is because they do not want to engage in commerce during a communist administration. I would like to have hardwood floors installed in my house but refuse to spend the $7000 while Obama is in office. I will not spend one more penny improving my house while the Bolsheviks are in power. Instead, I will take some of that money and use it to prepare for the collapse in society that is surely coming.