Negative yields push ordinary people to the stock markets. But for most of the ordinary people it would be better to stay in negative yields. The stock market will create a new bubble. And history learns us that ordinary people take big hits in bubbles. Much bigger than the negative yield they try to escape from.
L'histoire se répète.
thats the problem, everyone is chasing returns in the markets, if you are the 1% or rich you are chasing returns in start ups, venture capital, real estate, the dollar, etc, and the only returns for ordinary people is the stock market, which we all know most don't want to go near since they lost their life savings in it just 7 years ago and before that lost it again in 2000... who wants a CD paying 1% in 12 months when you can get 1% in a week in the market, thats where the problem lies, savers aren't getting anything, they are considered scum now that BUBBLE ben bernanke, yellen and friends have created this massive scheme to keep rates at ZERO and pump trillions into the markets to keep wall street happy, not only that but all the other world banks are doing the same exact thing, they believe it works, they believe it creates an opportunity when all its doing is creating the inevitable collapse, until then the world markets have pushed only higher on the backs of the money printing banks, now global equity markets are valued at $70 Trillion, a number never seen before, higher than the $65 trillion dollars back before the crisis set in 2008-2009....the addiction is here, there is no way it can be stopped now until the markets collapse and everyone realizes that there is no fix. Every central bank has backed themselves into a corner, they don't know it yet but will know once economies start to collapse....until then its smooth sailing ahead, but let me tell you the next crisis is going to bring negative interest rates to everyone and everything, its already happening in europe and will slowly spread out to other parts of the world especially here in the US, yellen isnt raising rate now or the next 5 or 10 years, if anything she is going to push them further down because she hasn't a clue how bad the next crisis is going to be, its going to be something the world has never witnessed, QE and free bailouts and the printing press won't help the next time around....thats a fact.
