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Thread: European Central Bank adopts negative interest rates

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    European Central Bank adopts negative interest rates

    'The European Central Bank on Thursday cut interest rates and took a raft of unconventional steps to prevent the 18-country eurozone from sliding into a bout of deflation that could kill off a muted economic recovery.

    The ECB's steps aimed to raise inflation and push more credit into an economy where lending is weak. The steps include cheap, long term loans to banks, tied to the understanding banks would loan the money to businesses, boosting growth.

    The ECB also took the unorthodox and untested step of imposing a negative interest rate on money banks deposit with it, an attempt to push them to lend that money, not hoard it.

    The actions contributed to a rally in European stock markets and a further fall in the value of the euro.

    The ECB took the conventional step of cutting its main interest rate, the refinancing rate, from a record low of 0.25 per cent to 0.15 per cent. It went well beyond that, however, reducing the rate it pays on money deposited by banks from zero to minus 0.1 per cent.'


    European Central Bank adopts negative interest rates - Business - CBC News

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    Re: European Central Bank adopts negative interest rates

    Quote Originally Posted by DA60 View Post
    'The European Central Bank on Thursday cut interest rates and took a raft of unconventional steps to prevent the 18-country eurozone from sliding into a bout of deflation that could kill off a muted economic recovery.

    The ECB's steps aimed to raise inflation and push more credit into an economy where lending is weak. The steps include cheap, long term loans to banks, tied to the understanding banks would loan the money to businesses, boosting growth.

    The ECB also took the unorthodox and untested step of imposing a negative interest rate on money banks deposit with it, an attempt to push them to lend that money, not hoard it.

    The actions contributed to a rally in European stock markets and a further fall in the value of the euro.

    The ECB took the conventional step of cutting its main interest rate, the refinancing rate, from a record low of 0.25 per cent to 0.15 per cent. It went well beyond that, however, reducing the rate it pays on money deposited by banks from zero to minus 0.1 per cent.'


    European Central Bank adopts negative interest rates - Business - CBC News
    I guess we will have to wait and see how it plays out. If the USA Banking program is any example, then it's just another screw job and the "rich get richer," Bank monies from gov't should be tied to entreprenureal endeavors and targetted loans that really make "labor" jobs. Renewable energy, new products, credits for small family farms, anything except MIC. Everybody goes broke with deflation, especially the banks. "Mark to Market" should be law everywhere.

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    Re: European Central Bank adopts negative interest rates

    Quote Originally Posted by DA60 View Post
    'The European Central Bank on Thursday cut interest rates and took a raft of unconventional steps to prevent the 18-country eurozone from sliding into a bout of deflation that could kill off a muted economic recovery.

    The ECB's steps aimed to raise inflation and push more credit into an economy where lending is weak. The steps include cheap, long term loans to banks, tied to the understanding banks would loan the money to businesses, boosting growth.

    The ECB also took the unorthodox and untested step of imposing a negative interest rate on money banks deposit with it, an attempt to push them to lend that money, not hoard it.

    The actions contributed to a rally in European stock markets and a further fall in the value of the euro.

    The ECB took the conventional step of cutting its main interest rate, the refinancing rate, from a record low of 0.25 per cent to 0.15 per cent. It went well beyond that, however, reducing the rate it pays on money deposited by banks from zero to minus 0.1 per cent.'


    European Central Bank adopts negative interest rates - Business - CBC News
    The people i listen to have been warning of this for over a year now, saw this coming from a mile off. Feels good to know the people i listen to are often correct on their calls.

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    Re: European Central Bank adopts negative interest rates

    Quote Originally Posted by DaveFagan View Post
    I guess we will have to wait and see how it plays out. If the USA Banking program is any example, then it's just another screw job and the "rich get richer," Bank monies from gov't should be tied to entreprenureal endeavors and targetted loans that really make "labor" jobs. Renewable energy, new products, credits for small family farms, anything except MIC. Everybody goes broke with deflation, especially the banks. "Mark to Market" should be law everywhere.

    Unlike what they tell us, the banks are insolvent and have been for many years now. Yes they are still insolvent enjoy.

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    Re: European Central Bank adopts negative interest rates

    Quote Originally Posted by DA60 View Post
    'The European Central Bank on Thursday cut interest rates and took a raft of unconventional steps to prevent the 18-country eurozone from sliding into a bout of deflation that could kill off a muted economic recovery.

    The ECB's steps aimed to raise inflation and push more credit into an economy where lending is weak. The steps include cheap, long term loans to banks, tied to the understanding banks would loan the money to businesses, boosting growth.

    The ECB also took the unorthodox and untested step of imposing a negative interest rate on money banks deposit with it, an attempt to push them to lend that money, not hoard it.

    The actions contributed to a rally in European stock markets and a further fall in the value of the euro.

    The ECB took the conventional step of cutting its main interest rate, the refinancing rate, from a record low of 0.25 per cent to 0.15 per cent. It went well beyond that, however, reducing the rate it pays on money deposited by banks from zero to minus 0.1 per cent.'


    European Central Bank adopts negative interest rates - Business - CBC News
    You are getting charged to put your money in a bank? 100 dollars deposited means you can take 99 out. Start stuffing the mattresses!
    We went from sticks and stones may break my bones but words will never hurt me to safe spaces.

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    Re: European Central Bank adopts negative interest rates

    Quote Originally Posted by DA60 View Post
    'The European Central Bank on Thursday cut interest rates and took a raft of unconventional steps to prevent the 18-country eurozone from sliding into a bout of deflation that could kill off a muted economic recovery.

    The ECB's steps aimed to raise inflation and push more credit into an economy where lending is weak. The steps include cheap, long term loans to banks, tied to the understanding banks would loan the money to businesses, boosting growth.

    The ECB also took the unorthodox and untested step of imposing a negative interest rate on money banks deposit with it, an attempt to push them to lend that money, not hoard it.

    The actions contributed to a rally in European stock markets and a further fall in the value of the euro.

    The ECB took the conventional step of cutting its main interest rate, the refinancing rate, from a record low of 0.25 per cent to 0.15 per cent. It went well beyond that, however, reducing the rate it pays on money deposited by banks from zero to minus 0.1 per cent.'


    European Central Bank adopts negative interest rates - Business - CBC News
    The Swiss did something similar once or twice. But their reason to do so was quite different. They wanted to stop money poring into the Franc.
    In this case it is to force lending into bad risky countries and companies.

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    Re: European Central Bank adopts negative interest rates

    Quote Originally Posted by DaveFagan View Post
    I guess we will have to wait and see how it plays out. If the USA Banking program is any example, then it's just another screw job and the "rich get richer," Bank monies from gov't should be tied to entreprenureal endeavors and targetted loans that really make "labor" jobs. Renewable energy, new products, credits for small family farms, anything except MIC. Everybody goes broke with deflation, especially the banks. "Mark to Market" should be law everywhere.
    It's basically nothing more than forced lending and forced spending.

    I'll say this much tho - I have never heard of a "negative interest rate."

    It appears what the EU is attempting to do is force an "economic boom" with this nonsense policy.

    I wonder how they're handling investments???

    And as far as the "rich getting richer" I don't see how that is even remotely possible considering the government(s) are basically forcing people to spend and not save - which is the entire point of this nonsense in the first place.

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    Re: European Central Bank adopts negative interest rates

    Quote Originally Posted by joG View Post
    The Swiss did something similar once or twice. But their reason to do so was quite different. They wanted to stop money poring into the Franc.
    In this case it is to force lending into bad risky countries and companies.
    The entire problem starts and ends with the Euro. That was one of the worst economic ideas ever.

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    Re: European Central Bank adopts negative interest rates

    Want to see how fast a bank can lose my account, start charging me interest to lend my cash to others.
    Einstein, "science without religion is lame, religion without science is blind."

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    Re: European Central Bank adopts negative interest rates

    Quote Originally Posted by grip View Post
    Want to see how fast a bank can lose my account, start charging me interest to lend my cash to others.
    That's not what this is about.

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