A negative interest rate?

Glenn Holland

Joined Dec 26, 2014
705
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.
 

wayneh

Joined Sep 9, 2010
16,399
Meh... not really... I live in a rented house :D
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.
 

Papabravo

Joined Feb 24, 2006
14,201
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.
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%.
 

Glenn Holland

Joined Dec 26, 2014
705
They put more money in their mattresses then in the bank.
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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