European Central Bank introduces negative interest rate. - Polidicks

[quote]The European Central Bank has introduced a raft of measures aimed at stimulating the eurozone economy, including negative interest rates and cheap long-term loans to banks. It cut its deposit rate for banks from zero to -0.1%, to encourage banks to lend to businesses rather than hold on to money. The ECB also cut its benchmark interest rate to 0.15% from 0.25%. The ECB is the first major central bank to introduce negative interest rates. Howard Archer, chief UK and European economist at IHS Global Insight said: "Despite being widely anticipated and in some quarters criticised for occurring too late, it is still a bold and unusual move by the ECB to take its deposit rate into negative territory." "There has to be considerable uncertainty as to how effective negative deposit rates will turn out to be," he added.[/quote] [url]http://www.bbc.co.uk/news/business-27717594[/url]

Interesting idea

Negative interest, aka Depreciation.

Money must flow. If you keep just piling them up in a vault, you are failing at capitalism.

It's effectively the same as stimulus packages that come from the banks themselves instead of the government. Interesting way to go about things.

A bank, trying to do the [B]right thing[/B] for the rest of the system instead of just sucking up all the money in their sight? Maybe there's hope after all.

[QUOTE=elixwhitetail;45010753]A bank, trying to do the [B]right thing[/B] for the rest of the system instead of just sucking up all the money in their sight? Maybe there's hope after all.[/QUOTE] well if you rob a store too many times you can't buy from it anymore

[QUOTE=Awesomecaek;45010545]Money must flow. If you keep just piling them up in a vault, you are failing at capitalism.[/QUOTE] I read it in this voice. [media]http://www.youtube.com/watch?v=oNmdqnFVAE0[/media] Get out of my head dammit.

Ron Paul just had an aneurysm.

Wow economics is so dull that even the European Central Bank has negative interest in it [editline]6th June 2014[/editline] Tyvm I'm here all week

[QUOTE=Awesomecaek;45010545]Money must flow. If you keep just piling them up in a vault, you are failing at capitalism.[/QUOTE] "Money is not worth anything if you don't spend it. So buy a gun." - Marcus Kincaid, Borderlands

[QUOTE=Kondor;45010923]well if you rob a store too many times you can't buy from it anymore[/QUOTE] It works on the squidbillies, hell ya america! Where almost all of the pork stimulus packages went to bankvaults!

[QUOTE=Radley;45014294]"Money is not worth anything if you don't spend it. So buy a gun." - Marcus Kincaid, Borderlands[/QUOTE] That sounds so American.

[QUOTE=elixwhitetail;45010753]A bank, trying to do the [B]right thing[/B] for the rest of the system instead of just sucking up all the money in their sight? Maybe there's hope after all.[/QUOTE] It's the European Central Bank, [I]obviously[/I] it's trying to do the right thing. Its whole purpose is to manage the Euro and European economy, not to turn a profit. [editline]6th June 2014[/editline] Well, in some ways I suppose it tries to turn a profit, but for everyone :v:

Isn't this a bad thing for most of us? I thought housing prices and interest rates were negatively correlated, ie, higher interest rate means lower housing prices and vice versa?

[QUOTE=smurfy;45011620]Wow economics is so dull that even the European Central Bank has negative interest in it [editline]6th June 2014[/editline] Tyvm I'm here all week[/QUOTE] Never change :v: