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Central Banks can enforce negative interest rates. https://en.m.wikipedia.org/wiki/Negative_interest_on_excess_reserves https://en.m.wikipedia.org/wiki/Negativ
by cesis 6y ago
Central Banks can enforce negative interest rates.
https://en.m.wikipedia.org/wiki/Negative_interest_on_excess_reserves https://en.m.wikipedia.org/wiki/Negative_interest_on_excess_...
- GreeniFi 6y agoSheeesh. Bad news for entrepreneurship. As due to mortgage lending rules, it’s very difficult to get a loan as a business owner rather than an employee with steady, bankable, salary
- imtringued 6y agoIt's also bad news for consumers because they cannot finance consumption with mortgages. You're never going to see consumer inflation if you're giving money to everyone except the consumers.
- legulere 6y agoCorporate bonds are also at a record low, even so much that there’s talk of an increasing rate of zombie companies that just stay alive because of loaned money and will collapse as soon as interest rates will go up again.
- apta_ 6y agoIt's not bad news. Because interest is parasitic (it's prohibited in Islam, Judaism, and Christianity), there are other (fair) ways to become an entrepreneur. Pitch your idea to an investor (or group of investors), and have them put money into your company. If it succeeds, everyone profits, if it doesn't, you're not left with crippling usurious debt.