Will Negative Interest Rates Work?

[.MASSHOLE.]

FRANKFURT — The European Central Bank cut its benchmark interest rate to a record low on Thursday and, in an unprecedented attempt to stimulate the euro zone economy, said it would begin charging interest on deposits held by the bank.

http://www.nytimes.com/2014/06/06/business/international/european-central-bank-cuts-interest-rate.html?smid=fb-share

Interesting move by the ECB. NS Europeans, thoughts?

 

[freestyler540]

the EU is filled with dildos.

That is all

 

[Iraq_Lobster]

they're european, they will fuck up eventually

 

[theabortionator]

The central bank system fucks up economies. Nothing they do will work.

 

[.MASSHOLE.]

The central bank system fucks up economies. Nothing they do will work.

Agreed, but since it is unlikely to change anytime soon, I am interested to see how the Europeans of NS feel about the negative interest rates. It likely means a higher fee system accompanied by a lower interest rate on their deposits.

 

[volvotom]

I think the intention is that it benefits spending versus savings. I am no economist, but I am unsure as to the efficacy this will have.

 

[acualywasdolan]

I personally feel a mass genocide is in order.

Central bankers, government regulators, dea agents and people who support the drug war.

Just kill them, sell their meat to animal farms.

That will improve the iq profile of those who are still living. Killing stupid people, those left behind will be smarter. Its simple.

 

[Mr.Bishop]

The main question is if the entire world is about to hit a massive correction or not.

As well, I'm curious to see if Keynesian economic theory pans out to be correct.

 

[acualywasdolan]

The main question is if the entire world is about to hit a massive correction or not.

As well, I'm curious to see if Keynesian economic theory pans out to be correct.

Keynesianism works if you actually save during the good times. Doesnt work if you spend and then spend more

 

[theabortionator]

Keynesianism works

LOL

 

[.MASSHOLE.]

Keynesianism works if you actually save during the good times. Doesnt work if you spend and then spend more

lol. Please.

Boom and bust cycles do not work.

 

[.MASSHOLE.]

Keynesian economics, works, these negative interests rates not so much

Where, in the past decade, has Keynesian economics worked? There have been NUMEROUS boom and bust cycles which have wreaked havoc across economies.

 

[acualywasdolan]

LOL

lol. Please.

Boom and bust cycles do not work.

Keynesianism is kind of like communism. I should have said, works in theory. I am not a fan of it though. I mainly wanted to point out that true keynesianism would necessitate saving during the good times, which countries generally dont do.

 

[CassiusClay]

Yes, they will work like a bandaid on a cut that needs stitches. For the time being (10 years) they'll be fine. The flaw with the eu is how open they've been. They should have set more stringent financial requirements and follower them.