If you’d even mentioned “negative interest rates” a decade ago, people would have (rightly) wondered if your brain was malfunctioning. Now they’re just another tool of the war on savers.
Too many people are complacent, lulled by normalcy basis. It might take bank runs followed by bail-ins to focus their attention.
But negative interest rates “to encourage spending” would only incentivize those who have savings. Something like a third (or maybe it’s half?) of American households don’t have $500 in liquid assets for emergencies. Central banks may need to hand out more helicopter money if they want people to spend. Of course that raises other issues.
A lot of articles I've read were saying that the negative rate won't be passed on to most people - banks and credit cards will have a lower limit in place
It's a good time to reflect on money itself - interest is relatively new concept after all!
Posted Using LeoFinance