Negative Interest Rate

what is this?

LoL !

My advice to Cappo , Googs, Chairman et al :

remove your money from "small banks" and keep under Mattress

Federal Treasury Bills  are useless...

Couple months ago I thought our Bank of Canada :

would have set interest rates at ZERO %  :-[


and government T bills , pay zero as well !

gosh i have no idea what you said there....lol

[quote author=~Nargis~ link=topic=102600.msg677846#msg677846 date=1455120669]
gosh i have no idea what you said there....lol
[/quote]

With negative rates, commercial banks would now have to pay the central bank to hold deposits with them.

with "them" who?


so that means right now the commercial bank is not paying the central bank to hold money>

[quote author=~Nargis~ link=topic=102600.msg677849#msg677849 date=1455121133]
with "them" who?


so that means right now the commercial bank is not paying the central bank to hold money>
[/quote]

normally the central banks charges a commercial bank a rate to borrow lets say 2%. now the commercial banks have to pay the central to hold their money ;D

[quote author=~Nargis~ link=topic=102600.msg677808#msg677808 date=1455114764]
what is this?
[/quote]

By charging interest on bank deposits, the central bank is hoping banks will want to avoid paying interest and instead start lending out their excess funds again, and thus spur the economy back to full employment.

[quote author=The Chairman link=topic=102600.msg677851#msg677851 date=1455121491]
and instead start lending out their excess funds again, .
[/quote]

Unfortunately that Lending will be at astronomical Interest rates

Cost of consumer borrowing will triple or quadruple .

IT is a stoopid Central Bank policy !

Instead of making Central bank ZERO %:

and forcing commercial banks to make Loans @ criminal % rates.

Why NOT just increase Federal interest rates ??

Too Simple ?

uh huh !    ::LOL::