Posted on 10/24/2015 5:12:37 PM PDT by SeekAndFind
The concept of earning interest on money in the bank is so deeply ingrained into economic life that few people even know that the opposite can happen too: Banks can take a percentage of cash from your account in the form of negative interest rates, under certain conditions.
Normally, this doesn't happen. Banks want your cash, and pay you interest on it, because the more deposits they have, the more they can lend it to others who pay them even more on their investments.
But interest rates in Europe are so close to zero — and economic activity is so sluggish — that some central bankers are seriously discussing whether they should drive interest rates into negative territory in the future, as a sort of economic punishment for not spending money. The theory is that if you are deterred from keeping cash in the bank you'll withdraw it and spend some of it, thus creating economic growth.
Europe's central banks and the US Federal Reserve have kept interest rates near zero for years now in the hopes of making money cheap to borrow. The intent is that because it costs next to nothing to borrow money, you'll take advantage of that and invest it in anything that pays more than a 0% return. That usually creates inflation too, as the influx of cheap, new cash devalues the existing stock.
But inflation is nowhere to be seen. The price of oil has fallen dramatically, making anything that requires fuel cheaper. And with prices falling, people hold off on spending today because they know their money will be worth more tomorrow. That lack of economic activity despite the cheapness of lending is exactly what is holding the economy back.
(Excerpt) Read more at businessinsider.com ...
It is important that you know - anything you have in a security deposit box is not insured.
and they will up your rent on the safety deposit box.
you dont think they can find ways to get some money from you?
BOA BS did this to me. Lost my job had no money coming in to the account, BOA would charge me $14 for a “service fee”...ran me negative and then charged me another $25 for being negative. Closed the account the next day. I will not argue with a crook.
I think I have the FINCIN tip line number around here somewhere.
you do it by using paypal. or someother internet type’money service that’you can add just’enough money into your checking, then write the check - or electronic check. thats how.
In a few years there will be no visual money. There will be a ‘debit (card) number placed in your body. No one will have cash. No under the table deals. Government gets all they want. IMO
Not fair to me as a retiree, I counted on that extra money.
If that's the case, then what will folks do when there's no electricity or internet?
Credit Unions
“You’re a dirty rat!” Spoken in my best imitation of James Cagney.
We have a safe at home. I’ll pull every single dime out and they can kiss my rear.
CASHLESS SOCIETY: BIG BANKS REJECTING CASH
https://www.youtube.com/watch?v=5cEgxzXXKkQ
“That lack of economic activity despite the cheapness of lending is exactly what is holding the economy back.”
The reason people are not spending money is because they do not want to engage in commerce during a communist administration. I would like to have hardwood floors installed in my house but refuse to spend the $7000 while Obama is in office. I will not spend one more penny improving my house while the Bolsheviks are in power. Instead, I will take some of that money and use it to prepare for the collapse in society that is surely coming.
makes sense. leave me alone. i just learned about google wallet yesterday lol
have to catch up on technology
+1
Lol
yet p/e ratios on stocks aren’t that bad. Who’s doing all the buying and why isn’t this stimulating business?
machines and robots taking jobs,
i work in the investment banking industry, or used to, and the greed has passed all logic regarding equities. no raises, few hires.
no one knows what this jerk is going to do next so how do you start a business not knowing future interests or energy costs at all. usually you can take a guesstimate, with this guy you can’t.
and since when did guesstimate become an accepted word? lol spell check didn’t pick it up.
Along with health insurance companies, they need to be destroyed so that local community banks and thrifts can actually serve their customers.
Just like the Congress, big corporate banks have forgotten who they are supposed to serve.
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