Sweden goes subzero

...the Swedish Riksbank entered uncharted territory when it became the world's first central bank to introduce negative interest rates on bank deposits.

edition.cnn.com...

Muy excelente! Sweden is a country overrun by Feminazis. It should suffer.

Other stupid countries that are suffering also include Spain for giving gorillas human rights and Switzerland for giving importance to plants.

The UK is not as pathetic as the US (or are they? ) but they should suffer, too. Call it payback for Atomic Kitten and Westlife.

Mervyn King, the Bank of England governor, has hinted he may follow the Swedish example as the danger of a so-called liquidity trap...

edition.cnn.com...

reply to post by eldard


If you actually read the article instead of bouncing up and down with moronic glee, you'll see the very sensible reasoning for this and how it'll work.

It is essentially a fine on those banks who have deposited their bailout money and "liquidity injections" into the Central Bank. If they keep the money there, instead of lending it, then it'll lose value and end up back in the hands of the central bank that issued it. So it forces the Banks to lend this money, like they were supposed to.

Originally posted by stumason
reply to post by eldard

 

If you actually read the article instead of bouncing up and down with moronic glee, you'll see the very sensible reasoning for this and how it'll work.

It is essentially a fine on those banks who have deposited their bailout money and "liquidity injections" into the Central Bank. If they keep the money there, instead of lending it, then it'll lose value and end up back in the hands of the central bank that issued it. So it forces the Banks to lend this money, like they were supposed to.

so long as it's just for other banks, and not individuals...i would hate to have 10k in a bank, when they wanted to charge me an interest rate just so they can hold my money for me....my mattress won't charge me interest.

So ironic that the banks now want to charge you interest for keeping your money safe. THis is another reason to get back to an honest money gold standard. THere is no lie in gold, you either have it or you don't.

What are you guys talking about? everybody knows the banks have our best interests at heart.


Give me an example of when the banks have done us wrong.


No didnt think so

reply to post by Reading


Ever hear the expression, "holding the short end of the stick"?

Google it and read how it came about (banking) and then answer your own question.

Originally posted by eldard
Muy excelente! Sweden is a country overrun by Feminazis. It should suffer.

Other stupid countries that are suffering also include Spain for giving gorillas human rights and Switzerland for giving importance to plants.

The UK is not as pathetic as the US (or are they?

) but they should suffer, too. Call it payback for Atomic Kitten and Westlife.

Mervyn King, the Bank of England governor, has hinted he may follow the Swedish example as the danger of a so-called liquidity trap...

edition.cnn.com...

What, pray tell, is a "feminazi"?

And what is wrong with giving gorillas human rights? They can use sign language, don't beat their spouses, haven't started any wars, live in harmony with their environment, don't create waste, didn't cause global economic meltdown, tend gently to their children, and--wait a second...maybe they deserve above-human rights.

Originally posted by eldard
Muy excelente! Sweden is a country overrun by Feminazis. It should suffer.

Other stupid countries that are suffering also include Spain for giving gorillas human rights and Switzerland for giving importance to plants.

The UK is not as pathetic as the US (or are they?

) but they should suffer, too. Call it payback for Atomic Kitten and Westlife.

Mervyn King, the Bank of England governor, has hinted he may follow the Swedish example as the danger of a so-called liquidity trap...

edition.cnn.com...

What the hell are you babbling about here? Your first post was very interesting, but then you threw all your credibility away by posting this blanket statement garbage.

By your logic, all of South America should suffer because they have Jaguar habitats. Oh, and Britain is going down because they have have horticultural club. Don't even get me started on the Native Americans...

Originally posted by eldard
Muy excelente! Sweden is a country overrun by Feminazis. It should suffer.

Other stupid countries that are suffering also include Spain for giving gorillas human rights and Switzerland for giving importance to plants.

The UK is not as pathetic as the US (or are they?

) but they should suffer, too. Call it payback for Atomic Kitten and Westlife.

Is this really what's become of ATS?

Did you bother to read the article? Do you understand how central banks work?

Or did you just want an excuse to rant about how 'stupid' other countries are?


Deny ignorance indeed.

Originally posted by Sashromi
So ironic that the banks now want to charge you interest for keeping your money safe. THis is another reason to get back to an honest money gold standard. THere is no lie in gold, you either have it or you don't.

Yes, everyone should cary lots of gold on them. That seems entirely too practical. Why are we not doing that now? Tell you what, you start hoarding gold and carrying it on your person. Then please publish your address and average weekly schedule and I can show you why that idea is not really any better than this fiat currency BS either.

Originally posted by Sashromi
So ironic that the banks now want to charge you interest for keeping your money safe. THis is another reason to get back to an honest money gold standard. THere is no lie in gold, you either have it or you don't.

Really?. Does fort knox actually have the gold the claim?. Does the gold etf GLD? Nobody knows.

Don't think everyone understands how central banks function.

Your money Private Bank(s) Central Bank. Just like you get an interest rate, so does the bank when it deposits to the central bank. Forcing a negative interest rate on central bank deposits has no effect on your savings account, it just forces private banks to want to lend money to consumers and you to make its interest (and income), instead of hording it in the central bank to leech some profit off it.

Quoted from OP's article:

In the UK, for example, nearly £140bn has been injected into the economy through central bank purchases of government bonds and corporate assets, mainly from the commercial banks.

However, since the QE project was launched on March 5, a lot of this money, which in theory should be used by the commercial banks for lending to businesses and individuals, has ended up at the Bank of England in reserves.

Commercial bank deposits have risen from £31bn in early March to £152bn at the end of July -- the latest figure.

So the UK banks got 140bn from its gov't, and then deposited 121bn of that (86%!!!!) into the central bank which it is getting free interest off it. Way to go to use a government stimulus to stimulate consumer accounts... all its doing it getting its % interest on 121 billion pounds for free, while still not letting consumers barrow money.

Not even sure if I wanna know how many US banks are doing this with the 400bn or so dollars they received... but I think Sweden has the right idea

[edit on 31-8-2009 by SlasherOfVeils]

[edit on 31-8-2009 by SlasherOfVeils]