Brown_Pride

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Atheist for Jesus
you'd see an immediate run on banks, if only out of sheer terror. Then more shifting of money overseas.

See we already know where the vast majority of money in the US sits, it's in the hands of the rich and powerful. They don't need to spend money, they MIGHT invest further into their businesses but if they haven't been doing that these last 15 years where they have seen record breaking profits they aren't going to start now. shyt like this is exactly why the wage gap makes a difference. Negative interest rates are designed to entice spending and capital improvements.

At the very least it'll be interesting to see.
 

Calmye

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Its coming stateside to very soon...

I keep telling folk to invest that savings in real estate or stocks...

Do not keep your money in the bank...
:mjlol: This isn't coming to America at all but still. The fed will raise rates this year most feel. I have a diverse P2P portfolio, I contribute to a Roth 401K, And I just got some oil stocks since they're on the cheap right now. But putting you money in a savings account right now is :scust:
 

Domingo Halliburton

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Am I wrong to see this as somewhat regressive(i.e. The higher overall wealth you have the more you can put to work outside a bank) @Domingo Halliburton ?

I will be amazed if this comes to America, but yeah I could see someone making that argument. Honestly this is uncharted waters (that I know of), and I don't know how many studies have been conducted on the impacts. But then again there are quite a few people already who argue the Fed only benefits rich people/banks to begin with so this would just be another policy to point to.
 

714562

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Am I wrong to see this as somewhat regressive(i.e. The higher overall wealth you have the more you can put to work outside a bank) @Domingo Halliburton ?

First off, banks haven't really passed on the cost of a negative interest rate to their customers yet. Many have just been eating the loss.

Second, negative interest rates mean borrowing costs become low for households that want to take out loans.

This is unknown territory in central banking. We'll have to see.
 
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