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No and yes, I was talking about governmental bonds. The real effect is that people who don't have enough money, knowledge or guts to invest have extremely low o
by TomMarius 9y ago
No and yes, I was talking about governmental bonds. The real effect is that people who don't have enough money, knowledge or guts to invest have extremely low or even negative interests on their money even though they used to have good returns ten years ago. Social engineering at its best.
- simias 9y agoI'm not much of an economist but I think most investors know full well that they have a negative interest rate. I think it's still attractive because it's safe since the governments are unlikely to default (so you'll lose the interest but probably not anything else). Like stuffing the mattress with gold ingots, except more convenient. I could be wrong though, but that's the only way negative interests make sense to me.
- TomMarius 9y agoI'm not talking about "investors", the ones getting screwed are ordinary people, young families and so on. They uses to get nice 5-8% p.a. return on the money they had in their bank account, nowadays not only they don't get any return, but also have to pay for having money in the bank account, which used to be free. That's what socialism and market manipulation does, screws ordinary people.