It’s here!
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It’s here!
Author: negativeinterestrates
…A decade ago, negative interest rates were a theoretical curiosity that economists would discuss almost as a parlor game. Two years ago, it began showing up as an unconventional step that a few small countries considered. Now, it is the stated policy of some of the most powerful global central banks, including the European Central Bank and the Bank of Japan.”
http://nyti.ms/1O6S84U
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Bloomberg: NIRP the Final Frontier?
Earth to Starship Enterprise…
http://bv.ms/1ow58fO
Negative interest rates act effectively as a hidden tax funneled directly to banks. They are inherently unhealthy. Currently, they could indicate also a measure of unease among two of the four most powerful central banks. If so, that could well escalate.
What would be a lousy deal for individuals may be logical for big banks and insurance companies
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BOJ Meets Alice inWonderland
Nicklaus: Japan enters looking-glass world of negative interest rates
In Japan and much of Europe, central banks have taken businesses and investors through the looking glass.
Like Alice, they find themselves in a world where the old rules of logic have been suspended. Lewis Carroll’s young heroine had to walk backward to move forward, and a bond buyer now has to pay governments for the privilege of lending them money.
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Ripples from BOJ
TOKYO — The Bank of Japan’s negative interest-rate strategy is clearly designed to keep the yen from strengthening.
TOKYO—Bank of Japan Gov. Haruhiko Kuroda said Wednesday the central bank is looking into how a discussion about negative interest rates was leaked to Japan’s Nikkei business daily before the bank made an official announcement.
Thanks to the Bank of Japan – where interest rates are now negative out to eight years – the financial markets now seem to assume that central banks will keep pumping out endless money to help shore up their lackluster economic growth.