Negative interest rates

AG47

Will any bank pay me to take out a loan?
Simon Black the sovereign man says it actually is possible right now.

Why would the bank pay you?

If the negative interest rate is more than the rate they pay you then the bank still makes money on the loans.

If the bank can still make a profit on the spread they just want the business.

It's still very dangerous in a big inflation environment as the currency supplies are expanded more and more.

Yes you'd think being in debt is good in big inflation, but not if all mortgages are revalued in a new monetary system that replaces the temporary one from 1971

Negative interest rates just show up the absurdity of the current broken financial system.

movilogo

It is only a theory - it won't happen in reality in UK.

Even if it happens, it will affect only corporate loans to push them circulate money in economy.

It won't apply to individuals.

mayonnaise

AG47 wrote: »

Will any bank pay me to take out a loan?

No bank will give you a loan as you're on a DRO.

AG47 wrote: »

I’m well into the first year, but still getting hassled by them.

I had it is possible to sue if they keep on harassing you?

What are the next steps please to start a lawsuit against them because they keep harassing me even after the dro has been approved?

Can anybody recommend a good legal team?

Kentish_Dave

Funny, someone who’s defaulted on their debts expecting free money.

There’s probably a causative effect there, with people who refuse to understand money being much more likely to end up in a mess.

Kentish_Dave

KFW had a heavily oversubscribed €5bn issue this week at -38bp, so it’s definitely the case that if you have a good credit rating that you can borrow at negative rates.

People who don’t honor their debts need not apply...

Jitter

The Bank of Japan introduced an interest rate of -0.1% in 2016, charging commercial banks for deposits to encourage them to loan their reserves and counter economic stagflation.

The charge did not however apply to ordinary customers accounts.

Zero_Sum

I know its not quite what OP was after but up until recently, Tesco bank loaned me £3k via a credit card interest free. I then gave it back to them via their current account & they then paid me 3%

zagubov

I thought this was going to be about the Worgl Experiment in deflationary currency

waamo

zagubov wrote: »

I thought this was going to be about the Worgl Experiment in deflationary currency

It looks like it's about some kind of crackpot wallet emptying scheme. https://www.sovereignman.com/

lisyloo

In 2008 I had a mortgage with first direct at BOE+0.49%.
I was fully offset on £160k.

At the beginning I had NSI index linked certs paying around 5% and I made about £8k per annum.
Towards the end (2018) I was only making £1k per annum and at one point I had the offset in first direct ISA so they were in effect paying me.

It’s called stoozing really, but they were paying me.