ECB "seriously" considering negative rate

Taking the benchmark deposit rate to negative territory "is something we are considering very seriously," says ECB board member Benoit Coeure, quickly adding not to expect too much effect on the economy from the move.

Theoretically, the move would induce banks currently parking money at the ECB (and earning 0%) to find better things to do with it, like lending it into the economy ... theoretically.

The euro (FXE) takes a quick drop, now off 0.5% on the session and buying $1.3575.


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Comments (2)
  • chopchop0
    , contributor
    Comments (5268) | Send Message
    Simple and brilliant. And probably unlikely to be followed here in the US by the bank insiders that work at the Fed.
    12 Feb 2014, 08:15 AM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2087) | Send Message
    Negative interest rates, my, my; what will they think of next. Have you ever seen such shenanigans? These governments have dug them so deep into a hole with their spending they have to invent new ways to convince us it is okay.


    Dorothy would simply say, "Oh my!"


    Hey Fred! I gots an idea! Now how about I raise (meant to write 'lower' but lowering rates below zero, my fingers automatically typed 'raise') lower my interest rates to below zero so you will not do business with me.


    Sure, that's it, I can make enough with overdraft fines and fake charges on the bottom of everyone's bills so make ends meet.


    So, everyone just ignore the facts as to why I have to offer negative rates, and praise me for being innovative.


    Thomas Jefferson said, "There are two ways to defeat a country, one is by arms, and the other by ruining its money." Or something similar.


    AND Abe Lincoln said. "I am a firm believer in the people. If given the truth, they can be depended upon to meet any national crisis. The great point is to bring them the real facts."
    Was he talking about our lying and selective media?
    I know Will Rogers did not trust the newspapers.


    Does anyone out there get it at all, even a little bit? Things are not happy in Willoughby.


    May I excuse myself, I need to go buy some Au and Ag.


    Capt. Brian
    The Lost Navigator
    17 Feb 2014, 03:38 PM Reply Like
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