Negative Interest rates

grizzly1911

stinktankcynic wrote: »

We had a debt crisis, banks lending to the wrong folk, yet the people in power are trying to encourage the same. Madness. Basically, the banks gave out big money, loans, mortgages to people and organisations who could not pay back. They took the bonuses, then went crying to the government when they were near folding. Shocking management, poor risk control, auditing and where was the bank of england and government. There should have been criminal actions, instead we see bonuses for failure, the tax payer and saver picks up the austerity tab, the people who took out loans can take out even more and the whole game starts again.



It's as if the ultra rich want to bring down the rest of us.

Perhaps the reason more draconian action hasn't been taken is because government wanted to allow it, it kept the economy inflated? Unfortunately it went too far.

Your final analysis should probably be they want to control us and keep the many at the least cost.

Thrugelmir

stinktankcynic wrote: »

I can see a 0% interest rate first. If that doesn't work then if they go negative,

The whole purpose is to force banks to do something with their cash. Rather than deposit it at the BOE.

Lend it to customers, other banks, buy gilts, buy investments.


Has nothing to do with consumer deposit rates.