3 ms·
I'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
by simias 9y ago
I'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.