T.H.E.M.
¨We believe in the judgment; we believe this first judgment will take place as God revealed, in America...¨
T.H.E.M.
¨We believe in justice for all, whether in God or not; we believe as others, that we are due equal justice as human beings.¨
Negative interest rates: Banks are coming for your money
Thought the money stashed away in your bank account was safe? Think again.
By Liam Frost
WHAT WILL NEGATIVE INTEREST RATES MEAN FOR YOUR SAVINGS?
In brief
- The US Federal Reserve may resort to negative interest rates, says the former president of the Federal Reserve Bank of Minneapolis.
- In this case, customers will have to pay banks interest on their savings.
- This could theoretically incentivize spending, helping to revitalize the economy.
As the coronavirus pandemic continues to curb economies around the world, many financial experts have begun to argue that the US Federal Reserve could soon move interest rates into the negative territory.
If that happens, banks will charge you for lending them money.
An article recently published by Narayana Kocherlakota, the former president of the Federal Reserve Bank of Minneapolis, fuelled this discussion by stating that “the Fed should go negative” starting this week.
Cameron Winklevoss✔@winklevoss
Negative interest rates. My body is ready.94010:09 AM – Apr 25, 2020Twitter Ads info and privacy128 people are talking about this
While the concept may sound outlandish to people who are not too interested in macroeconomics, it could—at least in theory—act as a defibrillator for a flatlining economy during times of financial crises. In Switzerland and Denmark, negative interest rates are already commonplace.
Banks authorized to grab stimulus checks off their customersEmergency coronavirus paychecks in the US could be forfeited to banks to repay outstanding debts, reports Prospect, suggesting that they won’t reach the hands of those who need it the most. B…NewsBusinessRobert StevensApr 15, 20202 min read
Negative interest rates are supposed to incentivize people to spend or invest funds during deflationary periods instead of hoarding them. Since their savings will shrink in any case, the argument goes that it’s better to use them right away rather than accumulate and face guaranteed loss.
“Unprecedented situations require unprecedented actions. That’s why the U.S. Federal Reserve should fight a rapidly deepening recession by taking interest rates below zero for the first time ever,” wrote Kocherlakota in his op-ed for Bloomberg……..more here
Click here for reuse options!Copyright 2020 Hiram's 1555 Blog