re: Our president supports negative interest rates

Just to be sure I understand you correctly here, if my savings rate is -1% and I go place $100 dollars in the bank, I still have access to that $100 at the end of the year instead if $99?

And why can't they loan out my savings for a greater return in a low interest rate environment? If a bank chooses to make a loan to so and so Joe to open a crabbie paddie how is not paying interest brother on that money?

It is either negative or it isnt. I'm not getting $101 or even $100 at the end if the year in my account. It will show $99. And it is a way to keep banks afloat and get the economy moving as banks have more dollars to loan out.

Make a ZERO SENSE in a supposed booming economy. None.

But, i am also one of the few who doesn't believe the government and when it comes to the economy I always do not believe the government.

Negative interest is polar to booming economies.

But, if it is a way to crush China exports and their currency it isba dangerous game to play. One we do not know how it will end or who wins regardless. And we do know many American savers will suffer horribly.

The negative rates are typically going to be the overnight rate. Banks lending to each other. Your savings account will likely be earning zero percent still if it goes negative that reduces their capital

What happens is people start withdrawing their money out of banks. This reduces the amount of their overall deposits which what is what banks lend against. It will reduce their overall capital. Banks are required to keep a have a certain amount of capital to match the loans on their balance sheet.

When rates are really low the margins shrink on lending. It becomes less profitable if at all. accounting and management for banks is a different beast than your typical corporate accounting/management.

This is why banks buy more loans and bonds during a tightening interest rate environment. They layoff hundreds of people that process loans, underwrite them, the sales people, marketing for lending etc... it costs lots of money to staff them versus a handful of guys that can go buy loans and bonds on behalf of the corporation to manage their balance sheet

1. He didn't mention Europe. You and Reuters just made it up.

2. You and Reuters don't speak Trump. His tweet does not mean he wants negative interest rates. It means:
a. Lower rates.
or at least
b. Don't you dare increase rates.

It's been over 2 years now. You should have some clue on how he operates. But if you don't learn then never fear, we're here to translate. No charge.

'Member when the stock market was up when Obama was president only because of "money printing" which was going to lead to hyper-inflation like Zimbabwe? I 'member.

END the FED

Trump needs to stay out of the Fed Reserves business. The Fed needs to stay independent of politics.

This is how Trump operates you nitwits. Trump doesn’t want negative interest rates but he does want them lower. He comes out and talks about negative rates and the fed will meet him in the middle and lower them.

quote:

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He also said the US should refinance their debt.

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Why? Based on government policies we have no intention to ever pay it back.

quote:

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Our president supports negative interest rates

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Political stunt to get re-elected.

This thread, like the last one on negative rates saddens me.

How is it possible that so few people comprehend that there's NOTHING different about the reasons for investing in a negative yield instrument vs the reasons for investing in a positive yield one?

Seriously. This is just bad