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qman
Stranger

Registered: 12/06/06
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Europe- negative deposit rate for banks
#19164577 - 11/20/13 11:08 AM (10 years, 3 months ago) |
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That's right, Europeans might face paying (.10%) to have their money at the bank.
http://www.zerohedge.com/news/2013-11-20/eur-collapses-ecb-strawmans-negative-rates-again
Maybe it's coming to the US.
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Lana
Head Banana


Registered: 10/27/99
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Loc: www.MycoSupply.com
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Re: Europe- negative deposit rate for banks [Re: qman]
#19165744 - 11/20/13 02:32 PM (10 years, 3 months ago) |
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I saw that article this morning. In Cyprus, their money was stolen quickly. With a negative interest rate, your money would be taken just a wee bit slower. Only the fearful would keep money in the bank. I was surprised to see that article actually. If negative rates are approved in the EU, the US would follow suit in just a few years (in my opinion).
Could you imagine making a deposit into your checking account for say $100 and then over time see it reduced even if there are no withdraws from you personally. Bank fees are one thing, negative interest rates...WOW.
I've been hearing that mortgage rates are "suppose" to drop again. I guess you could get an interest rate of 1% if the prime rate was a negative number.
Lana
-------------------- Myco Supply - Distributors of Mycological Products http://www.MycoSupply.com The Premiere Source for Mushroom Growing Supplies. Visit us online or call us toll free
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memes
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Registered: 01/11/05
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Re: Europe- negative deposit rate for banks [Re: Lana]
#19165762 - 11/20/13 02:35 PM (10 years, 3 months ago) |
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Quote:
Lana said: If negative rates are approved in the EU, the US would follow suit in just a few years (in my opinion).
I'd be surprised by that. I think the idea is so outrageous (to have to pay to haveyour money used by banks to lend out at (now infinitely) higher interest rates) that there'll be enough of a pushback here in teh US to keep it from hitting our shores.
Remember, we americans [as a group, not me specifically] are eager to shit on the europeans. deeming this negative interest rate as "batshit crazy european shit" and writing it off as preposterous.
The only way i see it coming here is if it actually works over there (why it would, I can not see). [disclaimer: by 'works', i mean "is successfully implemented without public pushback and had a measurable and substantive effect on the re-stabilization of EU banks (who have not written off their bad pre-crisis loans to the extent that the US banks have)
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Gilgamesh18
Herbivore Man

Registered: 03/01/12
Posts: 11,671
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Re: Europe- negative deposit rate for banks [Re: memes]
#19166099 - 11/20/13 03:49 PM (10 years, 3 months ago) |
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Yet another good reason to own precious metals
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DieCommie

Registered: 12/11/03
Posts: 29,258
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Re: Europe- negative deposit rate for banks [Re: Gilgamesh18]
#19166866 - 11/20/13 06:32 PM (10 years, 3 months ago) |
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Quote:
Gilgamesh18 said: Yet another good reason to own precious metals
Or just avoid the bank savings account. Who keeps their savings in a savings account anyway? I just use a checking account that rarely has more than a couple grand in it and any savings I have are going to my brokerage account, staying as cash, buying metals, etc. Savings accounts are already useless.
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Lana
Head Banana


Registered: 10/27/99
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Re: Europe- negative deposit rate for banks [Re: DieCommie]
#19168920 - 11/21/13 08:12 AM (10 years, 3 months ago) |
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memes, the problem is that you're thinking like a rational, educated, knowledgeable person
Think like a bankster.
Bank A offers a rate of, lets say, -0.1% Bank B offers a rate of -0.2% Bank C offers a rate of -0.3%
People rush to bank A because they'll loose the LEAST amount of money (remember we're talking about sheeple here) Then in a few months time, bank B lowers their rate to that of bank A and bank C lowers their rate to bank B and bank A now has the worst rates.
Point is... Bank A/ECB/bankster, whomever it may be gets their cut first. A few months go by and then its bank B's turn... so on and so forth.
When you can't raise interest rates, I guess the next best thing would be to perform a slow subtle bail-in.
Lana
-------------------- Myco Supply - Distributors of Mycological Products http://www.MycoSupply.com The Premiere Source for Mushroom Growing Supplies. Visit us online or call us toll free
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Adden

Registered: 06/04/03
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Loc:
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Re: Europe- negative deposit rate for banks [Re: Lana]
#19169240 - 11/21/13 10:11 AM (10 years, 3 months ago) |
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I thought this was a troll post on another subforum here.
I don't use my savings account and I never really will. I just have a general disdain for people knowing where my money's going or where my money even is. I'm not rich by any means but sometimes it's just not the bank's business.
If any bank proposed that then I'd go cash only and I hate carrying it to begin with.
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memes
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Registered: 01/11/05
Posts: 27,785
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Re: Europe- negative deposit rate for banks [Re: Lana]
#19175032 - 11/22/13 02:18 PM (10 years, 3 months ago) |
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Quote:
Lana said: Point is... Bank A/ECB/bankster, whomever it may be gets their cut first. A few months go by and then its bank B's turn... so on and so forth.
Yeah while i think this ruse would work on most ignorant ass Americans, I dont think we'd let it happen to us in the aggregate. We have enough people over here (and so does the ECB) that can see through this scam.
Quote:
Lana said: memes, the problem is that you're thinking like a rational, educated, knowledgeable person
This might be the first time anyones ever told me that in MM. lol
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Lana
Head Banana


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Re: Europe- negative deposit rate for banks [Re: memes]
#19185770 - 11/25/13 08:03 AM (10 years, 2 months ago) |
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Well.... looks like its not contained to just the ECB anymore. I have to wonder. If you hear that the Fed has dropped interest rates again, would it be safe to assume that within a reasonable amount of time banks would start charging depositors? I guess we'll have to wait and see.
Lana --------------------------- http://www.ft.com/intl/cms/s/0/b1d409d0-5399-11e3-b425-00144feabdc0.html
US banks warn Fed interest cut could force them to charge depositors
Leading US banks have warned that they could start charging companies and consumers for deposits if the US Federal Reserve cuts the interest it pays on bank reserves.
Depositors already have to cope with near-zero interest rates, but paying just to leave money in the bank would be highly unusual and unwelcome for companies and households.
The warning by bank executives highlights the dangers of one strategy the Fed could use to offset an eventual “tapering” of the $85bn a month in asset purchases that have fuelled global financial markets for the last year.
Minutes of the Fed’s October meeting published last week showed it was heading towards a taper in the coming months – perhaps as soon as December – but wants to find a different way to add stimulus at the same time. “Most” officials thought a cut in the interest on bank reserves was an option worth considering.
Executives at two of the top five US banks said a cut in the 0.25 per cent rate of interest on the $2.4tn in reserves they hold at the Fed would lead them to pass on the cost to depositors.
Banks say they may have to charge because taking in deposits is not free: they have to pay premiums of a few basis points to a US government insurance programme.
-------------------- Myco Supply - Distributors of Mycological Products http://www.MycoSupply.com The Premiere Source for Mushroom Growing Supplies. Visit us online or call us toll free
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memes
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Registered: 01/11/05
Posts: 27,785
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Re: Europe- negative deposit rate for banks [Re: Lana]
#19186121 - 11/25/13 09:51 AM (10 years, 2 months ago) |
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still not worried about it. citizens won't accept that.
we won't pay to keep our money in banks in order to offset the loss in revenues banks are getting hit with as a result of the decrease in payments received from the Fed for the mandatory reserves held therein.
that is, if anyone can explain that sentence clearly-enough to get Americans angry
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