CH: Never have the warning signals for a financial disaster of biblical proportions been so obvious and extant!!!
Read Here: Negative Interest Rates in Europe: A Glance at Their Causes and Implications
•Excerpt on Fair Value from World Bank Report
Anomalies in the valuation of returns and payment streams.
As interest rates approach zero, the calculation of present values of streams of cash flows becomes increasingly sensitive to the discount rate.7 Indeed, the present value of any stream can be made arbitrarily large by choosing a low enough discount rate. This becomes a contentious issue in the negotiation of fair value in legal settlements. As discount rates of zero or less have no economic meaning, a prolonged period of negative interest rates would create large ambiguities for the valuation of assets and liabilities