# A negative interest rate?

#### cmartinez

Joined Jan 17, 2007
7,419
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!

#### 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.

#### sailorjoe

Joined Jun 4, 2013
363
Japan has had a negative interest rate in savings accounts for many years.

#### Glenn Holland

Joined Dec 26, 2014
705
Japan has had a negative interest rate in savings accounts for many years.

#### Papabravo

Joined Feb 24, 2006
16,828
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.