How will banks survive deep NIRP?
- Thread starter babyjake1961
- Start date
It's either negative rates or higher fees. A mandatory savings haircut either way.IMO ...... Savings account will not be negative rates. They will be 0 at the lowest.
It may have been because the average trader hasn't a clue about central bank operations. Remember the endless posts predicting hyperinflation when the Fed announced QE?
Why would there be hyperinflation if hardly any of that money entered the real economy? The stock market bubble is not part thereof. The very reason they're now considering "helicopter money" the effects of which will nonetheless also be limited proportionally to the number and scope of the free cash handouts.
The central bankers don't realize that both regular people and commercial banks do realize this way to restart the economy won't work. That's why commercial banks prefer riding the stock bubble over the generous retail loan handouts in the pre-2008 style while regular people don't rush for extra loans either, now knowing there will be a time they won't be able to repay those loans. On their end, central bankers inject ever more of the same that didn't work (aka NIRP), mistakenly thinking it just wasn't enough last time while in fact it just doesn't work, period - no matter how much of it they apply. Or maybe they don't even think that - they're just terrified of the stock bubble they've inflated (when was the last time the stock market skyrocketed while the real economy remained largely stagnant?) and don't know how to pull the plug now.
If you don't have that remote island, may I suggest digging a very deep hole in your backyard, selling all your assets for cash, converting the cash into gold, ammo, guns, canned food and water, and moving into the hole until zdreg gives you the all clear sign.
martin why are you fighting such a perfectly valid and very probably correct assumption. Why do you feel so compelled to reshape this topic into "very normal thing" when NIRP is about as far from normal as it gets???
I have to ask martin..what is your reason for being here on ET??? Your history here is of strong social media damage control on behalf of the banks and Fed and short side folks.
By the way I usually fade your outlook, investing notions and comment direct with great success.
Well, banks themselves complain of NIRP already: http://www.ft.com/intl/cms/s/0/2ed4d1ae-cf48-11e5-831d-09f7778e7377.html
not bankrupt legally. in cyprus,they seized the assets withe connivance of the gov't.
And that is why even the insured depositors were subject to capital controls for quite a while which they wouldn't be if they simply got their insurance payouts.
Huh? When did I ever say anything regarding the normality of NIRP? You're confused, mate...
What is my reason for being here on ET? Simple, it's mostly entertainment. Reading comments like yours relieves occasional boredom. As to media damage control, yes, you're not the first to accuse me of being a media representative of the Fed. You are, however, the first one to suggest that I am speaking on behalf of the banks. That's new and weird and promises to be even more fun.
Finally, you fade my investing notions and comments? Really? I was under the impression that I hardly ever say anything that is specific enough to fade. If you have examples, I would love to hear them. Also, I guess this means that there's another good reason why I am on ET: to provide you with ideas to fade.