Negative Interest Rates
- Thread starter FAH1223
- Start date
The Fukin Prophecy
RIP Champ
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...
I keep telling folk to invest that savings in real estate or stocks...
Do not keep your money in the bank...
Your money just gonna disappear in the bank 
Futuristic Eskimo
All Star
If your theory is NIRP, real estate is the better choice.
Domingo Halliburton
Handmade in USA
If it hits deposit rates wouldn't you have to ban physical cash? Who would keep their money in the bank at that point?
Plus there's questions of its legality here.
Plus there's questions of its legality here.
I_Got_Da_Burna
Superstar
Yea it's seems as though it would only work on a corporate level, not an individual one.
Brown_Pride
All Star
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.
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.
Reginald Noble
Banned
Where is the safe haven????
That is the question here.
That is the question here.
for the avg joe, it probably means more services fees at banks
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 
Futuristic Eskimo
All Star
Holding physical cash is risky for the average person, though. You going to withdraw $100k and put it in your mattress?
Domingo Halliburton
Handmade in USA
Good question. I saw some article about the Japanese buying safes.
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 ?
Domingo Halliburton
Handmade in USA
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.
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.