Negative interest rates

coming to a bank near you
eu.usatoday.com/story/money/2019/08/09/denmark-jyske-bank-give-negative-interest-rate-buy-home/1965593001/

What exactly is the catch?

>It should be noted that even with a negative interest rate, banks often charge fees linked to the borrowing, which means homeowners could still pay back more
gimmick to attract customers

making plebs like you to take credit at lower interest rate now so they can fuck you nice and good later

Deflating currency, while expecting assets to go down. I am assuming?

its a strategy called loss leader. you sell something at a loss to attract new customers and then you charge them more on other stuff

sure that isn't what exactly happens, since its more like a discount on the total repayment but yes its essentially a thing that happens only its marginal, there are some mortgage loans with -0.5 interest. It also doesn't matter if they are giving discounted loans because you will be charged more from the savings interest as well as the loan money is just the banks magic funny money they created out of thin air.

You have a $10 bill you have $10
You have a $10 balance in you bank you have $9.90 after a year

Easy solution
Grab a baton, go to your local DMV beat the clerk to death. Rince and repeat with all public employees you can find. Beat them all to death

dunno about you guys but generally speaking I am sick and tired of all the money massaging going on. it seems every fucking day some new financial "instrument" is invented to "cook the books" in one way or another.

more inflation! negative interest rates! national debt! quantitative leaning! quarterly brapping!

if you still believe the global economy isn't a total joke you must be braindead.

You can get rich if you're in on the joke tho

buy BTC any deflationary tokens

as usual, goys still pay up whilst (((they))) print (input in a database) more imaginary money

let me in on the joke! I want more imaginary money so I can give it to housebuilders to build me a nice house and so I can pay up thots to suck muh penor!

Whatever keeps the normies working

There isn't really one in a direct manner.

This can breach retail if banks receive [central bank] funding according to their demand for funding or their level of activity.
I am unsure if this certain legislation exists, but I imagine it does at least in de facto form.
Central bank loans to regular bank at -0.5% if it sees that regular bank will use it to pump credit into the system
Regular bank gives out -0.3% mortgages since it's not allowed to just hoard the money
Regular bank profits on the differential.

Further, fractional reserve banking exists.
Central bank loans $1MM to bank A at 0% interest [we're presuming it's not negative because this better shows the principle of the matter]
Bank A runs a reserve rate of 25%, so it now has $4MM at its disposal to loan.
It cannot use its fractional reserve to outright buy consumer goods, so it must do things which involve interest rates (in short, everything which has an ultimate use-case [consumer goods] in the future, participates now in the interest rates market).
It is better for it to loan out $4MM at -1% per year than to loan out $2MM at 0% per year given that its reserves at $1MM - the former case yields a profit of $2.96MM if all loans are repaid after one year, and the latter yields a profit of $1MM

Is this because we've been running a good time economy for decades just blowing up debt expecting the world growth to always be pretty good, but now people are having fewer children, the major industrialisation phase is moreorless over seeing as everybody has the internet etc and now we don't have the growth to absorb the debt, so the mountain of money is now looking to go somewhere so it's gonna get ploughed into assets in a last ditch attempt to secure the value of the money before it gets "revalued" when banks start going under because they're not making money anymore and the loans get declared much less valuable than we thought and the tide finally goes out on the world economy as the shit load of money we thought we had no longer represents the stored work it was supposed to?

Something like that?

In which case all we need to do is sling it all into Bitcoin and a bit of gold then wait for the whole house of cards to blow over then we jump right back in when AI starts powering the next industrialisation phase leading to massive automation and 20% yearly growth fuck yeah

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well the next phase certainly will be AI driven, and aerospace heavy. which is something that should have happened long ago.

right now we are stagnating, left to split hairs (and stacks) because things are actually so fucking boring.

>Labor theory of value
>Futurist communist
You haven't changed since the 1920's

>negative rates are only for loans between central banks and commercial banks dummies. normal clients like you still get positive rates

What does this mean for bank customers? It depends on the bank. It might lower or charge its own negative interest rates, keep them the same and eat the loss, or charge interest indirectly through higher deposit fees.

Grace stresses that it's the commercial banks that decide whether to pass on the negative interest rates on to their customers. Switzerland is one country where the central bank briefly introduced negative interest rates on deposits and commercial banks followed suit.

baka.com.au/business/markets/just-what-are-negative-interest-rates-20140606-39n6d.html

>banker apologists on suicide watch

the house of cards isn't falling, it's going up in fucking glames

A lot of corporate bonds even have a negative yield. It's only a matter of time before investors start paying Apple to lend them money.

Meanwhile, Apple has a 12% minimum interest (((Goldman))) backed credit card and US credit card interest rates are the highest they've ever been.

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