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Negative Interest rates

PostPosted: Tue Aug 09, 2016 12:40 pm
by Sanford02
I thought this was an interesting story about negative rates in Europe

http://www.msn.com/en-us/money/markets/ ... li=BBnbfcN

Re: Negative Interest rates

PostPosted: Tue Aug 09, 2016 2:41 pm
by wheeler_dealer
Yes it is an informative article. Thanks for sharing.

Re: Negative Interest rates

PostPosted: Tue Aug 09, 2016 5:32 pm
by Sanford02
I love the notion presented here that central bankers may have predicted wrongly about the behavior of the masses. Neg rates are supposed to stimulate spending, because it costs too much to just hold money.....but of course it makes perfect sense that if people's savings aren't growing with positive interest rates, they are going to have to save more aggressively to meet their retirement goals. So, instead of making people spend, the neg rates are causing people to save more....even though it's costing them.