3 ms·
That is exactly my thought. All this can do in practise is reduce mortgage and other loan rates further and punish anyone holding cash. I'm not saying that's a
by LatteLazy 6y ago
That is exactly my thought. All this can do in practise is reduce mortgage and other loan rates further and punish anyone holding cash. I'm not saying that's a good or bad thing, but I don't think any normal people will be able to borrow a billion pounds and then just live off the negative interest rate...
- imtringued 6y agoThis is the fundamental problem. 0% interest rates make it easier to start a business, but your startup doesn't get to borrow at 0% because there is the very real risk that your startup will fail. You'll get a nice 8% interest loan at best and no loan at all in most cases. That risk doesn't exist for large companies but they don't have to invest their dollars domestically or even productively. They can spend them anywhere outside the US or just dump them into acquisitions and other stock market shenanigans.
- LatteLazy 6y agoI think this is like morphine: really stops the pain, until you're so addicted it kills you.