This is a consequence of negative interest rates. Up until now, the banks had shielded consumers from the consequences of NIR because of to quote the article "political reasons" Given that NIR don't seem to be ending any time soon, while foreign competitors are mugging them, banks and their institutional investors are looking to return to try and turnaround.
This was the original concern when NIR were first introduced by the ECB, and central banks of Sweden, Switzerland and Denmark in the midst of the financial crisis. Banks had eaten the expense due to the high risk they would lose their depositors. The zero lower bound cannot be avoided forever. Sooner or later, something's gotta give.
stoxx.com/index-details?symbol=SX7P The problem is, the ECB is looking at the numbers and correctly saying "shit, we're not reaching our goals, we need to stimulate more" except the ECB doesn't have any policy room left. Their monetary policy, even during the financial crisis has been economic experiments on a continental scale. The ECB is almost certainly going to cut rates again, when they're already negative and talking about restarting QE. As near as I can tell, the ECB doesn't have any answers for the Eurozone's woes.
It doesn't help that they never economically recovered than political leverage from European leaders. Sure, unemployment is down quite a bit but growth and inflation are anemic at best, median income in the EU is still about half of what it is in the U.S., and debt to GDP has barely decreased at all.
As for who is profiting off this? You don't need to be anyone well connected. You just need a margin account at an ordinary stock broker.
Why wouldn't everyone just take their money out of the bank and buy assets with it or at least have a safe and keep it at home? This way banks lose everything since people aren't using them.
Colton Cook
Is this it, the start of the second great depression except on a global scale?
Joshua Turner
No, it's the start of more distrust in banks again (notice how boomers and older often say they don't trust banks, you don't hear millenials saying that) , a return to more of a fair barter system, people diversifying their cash into assets, precious metals, crypto, instead of hoarding all pumping up the stock market.
Colton Moore
No, this problem is solely limited to Europe. American and Chinese banks are doing fine at the moment.
Owen Smith
>Chinese banks are doing fine I'm just going to assume that you have an IQ of 60 and have no fucking idea what you're talking about because that statement makes it abundantly clear that is the case.
Carter Gutierrez
Yields on even corporate bonds like for Nestle and Apple are negative in some places - like Switzerland. Ad yet, Investors still buy these bonds. Which I think might be s sign of fear, since investors want to find a place to stash their cash.
And the swedes so happy they aren't using cash. Shot themselves in the foot with that one. Meanwhile in Mexico debit and credit cards are not working because ONE provider fucked up.... Buy gold, silver and buy bsv, the only coin needed, all other will go to zero eventually.
Jayden Barnes
Explain to me why they are buying negative yielding debt over gold and silver
Parker Ward
Storing large amounts of gold safely costs money.
Isaac Reyes
Can anyone explain why all these indicators are so shit? Why can't banks make money?
Alexander Anderson
>Chinese banks are doing fine at the moment. Are you a ccp shill or just a complete fucking moron?
Jonathan Turner
When do you think they'll put 2 and 2 together and just buy BTC?
there won't be a great depression for many, only the old money and boomer investors. banks and credit processing companies will fail, and other corporations will start to automate, leaving a ton of middle class white paper pushers unemployed and a lot of downtown skyscrapers empty, cities will take a hit, but so many are already on welfare demand for resources and food won't go down, meaning the countryside and the industrial parts of cities will be fine. its the bullshit businessmen that are going to get hit the worst, sort of like 2008 but worse.
Ethan Baker
>btc people are just going to sell euros for dollars.
Adam Morgan
Many large funds such as mutual and pension funds have legal restriction on what they can invest in.
Dominic Turner
I should point out one of these legal requirements: pensions are often required to hold certain percentage of goverment bonds. What this means is you are forced to pay into a pension for goverment jobs which is the goverment de facto forcing you to buy their bonds by proxy.
The current economic system we live under is corruption on top of corruption on top of central banks manipulating markets not only on a national level but through colusion on a world wide scale.
And people still wonder why Bitcoin, the antithesis of this mess, is such a massive success.
Nathaniel Ortiz
please do the needful sirs
Daniel Green
t. Paul Krugman
Connor Lopez
I'm assuming your IQ is at most 120 because you have so profoundly failed to apply the IQ as a metric to the poster you are replying to. A 60 IQ will not be able to follow trends well enough to discuss them.
Someone with a 100 IQ is probably ill equipped to discuss the economics of Chinese banks. user could just be averaged.
