Topic: Germany able to borrow money at negative interest - page 2. (Read 4288 times)
Its the same for the US and UK.
Given the instability of the EU, one could say that the market values a Euro of book money far below the current value of one Euro. I wouldn't lend money to Germany at 5% interest right now if I could store the value instead. Negative... go figure what that means.
Seems to me it means the investors here don't think they can store the value. That's the part that worries me.
Couldn't they could just keep their money in a bank account?
At which bank? Any could die tomorrow and never pay back a thing. The German government will rather wreak havoc in the financial sector than admitting defeat itself, and it has the power to decide. Possibly, this gives better chances with the government.
this just means that investors already realize that they will have a loss -- this is just a way to reduce the damage.
This should be the correct explanation.
You can't hold many euros as cash, and putting them onto a bank can mean their immediate destruction in the debt crisis. Euro Forex has crashed already, and will continue that road if they try to escape that way. They don't know where to go. It's a competition who has the least losses.
Given the instability of the EU, one could say that the market values a Euro of book money far below the current value of one Euro. I wouldn't lend money to Germany at 5% interest right now if I could store the value instead. Negative... go figure what that means.
Couldn't they could just keep their money in a bank account?
Or are they speculating that their bonds will increase in value?
Or are they speculating that their bonds will increase in value?
By giving Germany money, they are hoping Germany will be more willing to lend the other European nations enough to keep them afloat.
Couldn't they could just keep their money in a bank account?
Or are they speculating that their bonds will increase in value?
Or are they speculating that their bonds will increase in value?
Should invest in Bitcoin instead 
this just means that investors already realize that they will have a loss -- this is just a way to reduce the damage.
Is there a link that isn't paywalled?
Is this as bad as it sounds?
That money sure isn't going into investments in the private sector. Does not bode well.
pardon the phrase but if it's true then this is ass bad for the rest of the world. I'm just saying: german engineering!
http://online.wsj.com/article/SB10001424052970204124204577150311730396748.html
Is this as bad as it sounds?
Is this as bad as it sounds?
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