Earth to central bankers, listen to this clip to understand why your Q’Eternity tricks are not ‘stimulating’. Indeed just the opposite, your 15 years of lowering rates and lending standards while offering lax, indulgent ‘oversight’ and deregulation of investment banks worldwide have purchased the present mess and economic malaise. Merci.
Bloomberg’s Yalman Onaran breaks down why negative rates are not spurring lending. Here is a direct video link.
“Following the European crisis, economies are too highly levered, so companies and consumers they can’t borrow. So when you don’t have demand, people can’t borrow and the banks can’t lend.” Mystery solved!!