4 ms·
Would negative interest rates actually percolate down to retail consumers? Will I be able to get paid to take a loan?
by core-questions 6y ago
Would negative interest rates actually percolate down to retail consumers? Will I be able to get paid to take a loan?
- vmception 6y agoIf US treasuries go steeply negative enough (and the spread remains as tight or gets tighter) then yes, banks will pay you interest, while you still pay principle. Lenders so far stay in the market because they actively trade the debt object even if they lose the business of earning interest. (With debt, the price of the contract increases as interest rates go down)