How will banks survive deep NIRP?

[babyjake1961]

Huh? Empirical evidence is not produced by "talking heads". It's called empirical, since it is based on actual observed facts.

As to being curious, you seem to know exactly what the future holds, so I am really not sure there's any point talking about it.

Does Bernanke's "bedrock of the economy" with regards to MBS pre-2008 qualify as an "actual observed fact"?

How much money does the FDIC have to cover the insured deposits?

 

[Martinghoul]

Does Bernanke's "bedrock of the economy" with regards to MBS pre-2008 qualify as an "actual observed fact"?

How much money does the FDIC have to cover the insured deposits?

Is that a trick question? No, of course it doesn't... That's Bernanke stating his view, obviously.

As of Jun 30, 2015 the FDIC DIF balance was $67.6bn. Obviously, the FDIC is also explicitly backed by the U.S. govt.

 

[babyjake1961]

Is that a trick question? No, of course it doesn't... That's Bernanke stating his view, obviously.

As of Jun 30, 2015 the FDIC DIF balance was $67.6bn. Obviously, the FDIC is also explicitly backed by the U.S. govt.

Yes, they have a 100 bn credit line from the Treasury in addition to the balance you mentioned. None of that is even nearly enough to cover the insured deposits when America's biggest banking oligopolies go bust.

Bernanke was the Fed Chair at the time of stating his view. Was he deliberately lying or incompetent that much?

 

[Martinghoul]

Yes, they have a 100 bn credit line from the Treasury in addition to the balance you mentioned. None of that is even nearly enough to cover the insured deposits when America's biggest banking oligopolies go bust.

Bernanke was the Fed Chair at the time of stating his view. Was he deliberately lying or incompetent that much?

If you say so...

I have no idea, because, frankly, I don't give a damn...

 

[babyjake1961]

If you say so...

I have no idea, because, frankly, I don't give a damn...

I wouldn't only if I lived on a remote private island with stockpiles of ammo and canned food.

 

[OptionGuru]

Q: How will banks survive deep NIRP?
A: New fees and increased fees.

 

[babyjake1961]

Q: How will banks survive deep NIRP?
A: New fees and increased fees.

And when there's hardly anyone left to be charged those fees?

 

[OptionGuru]

And when there's hardly anyone left to be charged those fees?

Less competition means increased fees. I don't think banks make much money in a high interest rate environment - fees is where its at.

 

[babyjake1961]

Less competition means increased fees.

I mean the bank clients who will just pull their cash from savings and use alternative payment methods for transactions.

 

[OptionGuru]

I mean the bank clients who will just pull their cash from savings and use alternative payment methods for transactions.

IMO ...... Savings account will not be negative rates. They will be 0 at the lowest.