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negative rates won't happen in the retail market. it's fed to banks to enforce lending (and "economic activity").
by lintiness 11y ago
negative rates won't happen in the retail market. it's fed to banks to enforce lending (and "economic activity").
- roddux 11y agoNegative rates, maybe not. 0% rates, perhaps.
- lintiness 11y agoas best i can logic (my abilities here are extremely limited), i'd say only a public entity would ever consider lending at 0% or lower. they receive a payoff indirectly through generated activity and tax revenue so could stand the real upfront loss. no non-crooked private party would entertain lending with no interest (i certainly wouldn't).
- jsprogrammer 11y agoBofA offered 0% loans about 5-7 years ago.
- smaddox 11y agoFixed APR? I didn't think so.
- jsprogrammer 11y agoYes. They were short-term however; 18 months or less, if I recall.
- caf 11y agoIf you had $800 million in cash, and you could either deposit it with the central bank and be paid -0.5% interest, or invest it in say, a 12-month Apple corporate bond at 0%, what would you do? Note that attempting to hold onto the cash in a vault has real costs as well.
- dav-ycombinator 11y agoIt'd be better if it did.