As policy rates have moved to sub-zero for banks in parts of Europe and now Japan, the threat of negative rates being passed on to consumer deposits is real. ‘Central banks gone mad’ are destroying financial stability, but they are boosting safe sales at least. This is a logical response from consumers; but driving cash out of an under-capitalized banking system is self-destructive policy. Their next bright idea will be to mandate that cash in hand is worth less than digital currency…or some have mentioned banning cash altogether. Time to take the controls away from the crazy folks anyone?
Cory’s Chart Corner
- Boom-Bust repeat. History calls B.S on "it's different this time", it's always different.
h/t Jessie Felder
about 1 day ago
- Very impressive...however, given we're a consumption led economy, robots will become just another channel of wealth… https://t.co/OcCREIZbuL
about 1 day ago
- What determines an inverted yield curve w/QE distortions and a short end at 1.25%...does the 10 yr really have to g… https://t.co/9NEwz1H25x
about 3 days ago
- Boom-Bust repeat. History calls B.S on "it's different this time", it's always different. h/t Jessie Felder
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