A negative interest rate?

Discussion in 'Off-Topic' started by cmartinez, Jan 29, 2016.

  1. cmartinez

    Thread Starter AAC Fanatic!

    Jan 17, 2007
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    I mean... wow... this is the first time in my life I've heard of such thing, and it probably makes sense too, if what you want is to increase the amount of cash circulating in the economy!

    http://www.bbc.com/news/business-35436187
     
  2. Glenn Holland

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    Dec 26, 2014
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    The Dow Jones average is now a form of negative interest rate.

    However, there are cowardly safe investments that are actually getting a positive return.
     
  3. sailorjoe

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    Jun 4, 2013
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    Japan has had a negative interest rate in savings accounts for many years.
     
  4. Glenn Holland

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    With a negative rate, they should have just spent the $$$ (actually the Yen) instead of saving. :(
     
  5. sailorjoe

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    They put more money in their mattresses then in the bank.
     
  6. cmartinez

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    So, when you compare it with Sweden, their economic strategy is going in opposite direction?
     
  7. Papabravo

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    But it's an apples to oranges comparison. No two economies are alike, because each country has made different policy choices along the way.
     
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  8. wayneh

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    I hereby declare myself open to taking a mortgage loan at a negative interest rate. Let the bidding begin!
     
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  9. cmartinez

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    hey.... that was MY idea and I thought of it first... you just happened to post it here before me.. :D
     
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  10. wayneh

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    Snooze and lose! ;)
     
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  11. cmartinez

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    Meh... not really... I live in a rented house :D
     
  12. ronv

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    Let me know if you want me to hold your money. I'll give you my special rate. :D
     
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  13. wayneh

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    With a negative interest rate, I'd borrow 100M$ and become a land baron. They couldn't complain about my ability to cover the payments, since they'll be paying me, and the land is always going to be there as collateral.
     
  14. Papabravo

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    If you owe the bank $1000 and you miss a payment, you're in trouble.
    If you owe the bank $100M and you miss a payment, the bank is in trouble.

    You might actually take a negative interest rate in a highly inflationary environment if you could preserve the value of your cash by doing so. Negative 2% beats holding cash in a mattress, if inflation is running at 10%.
     
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  15. Glenn Holland

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    Dec 26, 2014
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    Yeah right and the thugs will graduate from car breakins to home breakins and/or armed robbery.

    It's been happening here in San Francisco for the past 20 years where the thugs know there's drug money stashed in homes.
     
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