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Thread: Depositors are next to be hit with negative interest rates

  1. #1
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    Default Depositors are next to be hit with negative interest rates



    Don't think this is only Europe's problem. With Trump and his Wall Street fat cats constantly hounding Fed Chairman Powell to keep lowing interest rates [for no good reason except the stock market likes it]... talking heads on FOX Business news have already predicted that the US may follow Europe into negative interest rate territory.


    Depositors Are Next as Nordic Banks Buckle Under Negative Rates

    Nordea's main investor says retail depositors can't be spared
    Likelihood of cost being passed on is seen as much higher now

    Ever since negative interest rates became a thing, banks have been too afraid to pass them on to retail depositors. That may be about to change.

    In Scandinavia, where sub-zero rates have been the norm longer than most other places, the finance industry has undergone several drastic adjustments to survive the regime. Banks have relied more on asset management and other services that generate fees, and less on the traditional business of lending and holding deposits. But with no end to negative rates in sight, those changes may not be enough.

    The director of the the Danish Bankers' Association, Ulrik Nodgaard, says shielding retail depositors from negative rates means that "banks are selling their products below cost price." And that is clearly "a challenge."

    Jesper Berg, the head of the Danish Financial Supervisory Authority in Copenhagen, says that so far banks haven't passed negative rates on to private customers for "political reasons." But if they finally do, "it will be interesting to see whether customers would accept that, or vote with their feet" and withdraw their savings. "

    more at link

    https://www.bloomberg.com/news/artic...negative-rates


  2. #2
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    After I posted this, I tuned into FOX Business news.

    The first thing I heard, "are negative interest rates coming to the US ?"


  3. #3
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    Could THIS be the REAL reason for the current anti-gun anti-second amendment frenzy ?!

    Trump and Republican leaders appear to be on board with the radical leftists' gun confiscation !


  4. #4
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    Related topic:

    How Negative Interest Rates Screw Up the Economy

    http://www.thetreeofliberty.com/vb/s...Up-the-Economy


  5. #5
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    Negative deposits just might be the solution to this bit of nonsense ....

    O.W.
    Anarchism is the liberation of the human mind from the dominion of religion and liberation of the human body from the coercion of property; liberation from the shackles and restraint of government. It is a social order based on the free grouping of individuals…”


    Emma Goldman

  6. #6
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    Low interest rates are great! Shoulda put your money to work instead of buying CD's.

  7. #7
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    I was offered 2.79% on a CD, if I gave the bank 100,000 for 37 months. That's 100,000 for over 3 years! In the 1980's I would have been making 13% on that money!
    They swore, if we gave them our weapons, that the wars of the tribes would cease.
    "You think a wall as solid as the earth separates civilisation from barbarism. I tell you the division is a sheet of glass."
    John Buchan, 1st Baron Tweedsmuir of Enfield (1875-1940): Author and Diplomat

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    Quote Originally Posted by Lenno View Post
    I was offered 2.79% on a CD, if I gave the bank 100,000 for 37 months. That's 100,000 for over 3 years! In the 1980's I would have been making 13% on that money!
    You could look at an annuity, but it would likely be not much better. Prolly 3.25 - 3.5%.

  9. #9
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    Quote Originally Posted by Lenno View Post

    I was offered 2.79% on a CD, if I gave the bank 100,000 for 37 months. That's 100,000 for over 3 years! In the 1980's I would have been making 13% on that money!


    Navy Federal Credit Union just recently lowered its 5 year CD from 3.50% to 3.25%.

    Active/reserve/retired military or close relatives of same can join.

    One can join/bank on line or at a local branch.


  10. #10
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    Quote Originally Posted by Mountainbear View Post
    You could look at an annuity, but it would likely be not much better. Prolly 3.25 - 3.5%.
    recious metals; lead, copper, beans, boots, bandaids
    p
    They swore, if we gave them our weapons, that the wars of the tribes would cease.
    "You think a wall as solid as the earth separates civilisation from barbarism. I tell you the division is a sheet of glass."
    John Buchan, 1st Baron Tweedsmuir of Enfield (1875-1940): Author and Diplomat

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