Negative interest rates continue: German bank first nonstate borrower <0% bond

Washika

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Quote from: HeroCat on May 05, 2016, 01:23:38 AM

The question is who will buy bonds with negative interest rates. I think possible buyer can ask the question - if there is no profit, why I must buy ?

For some investment funds, they have to invest whatever the interest rate. So it is good to hold bitcoin, nobody can charge you interest.

HeroCat

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The question is who will buy bonds with negative interest rates. I think possible buyer can ask the question - if there is no profit, why I must buy ?

avikz

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This had to happen. Ever since the EU moved to EURO, the problem started. Initially the EURO was showing very rosy but not showing its true colours.

This problem can't be resolved overnight and probably will take a decade to get resolved. Not a good sign for the economy.

But it certainly doesn't mean that bitcoin or any other altcoins can be an alternative to the fiat system.

pitham1

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Quote from: Washika on April 29, 2016, 12:45:44 PM

Quote from: Amph on March 09, 2016, 07:37:07 AM

Quote from: ?? on ??

It might make a chaos if all users decided to withdraw their money from bank and that bank use fractional-banking system Roll Eyes

There's no problem if they don't get interest, but to take their money is too much. It can be categorized as stealing.

i'm not even holding anything in the bank, all in bitcoin, minus some dumping here and there to buy stuff that you can not find with bitcoin yet

they can go bankrupt for all i care, more bank going down, more possibility for bitcoin to shine

It is good that you are almost all in bitcoin. I would like to, but I am not so brave. Only small proportion of my wealth is in bitcoin.

That was the way with me too. But with bitcoin appreciating in price and my bitcoin stack slowly going up, it has become a sizable contributor of my wealth.

Washika

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Activity: 332

Merit: 250

Quote from: Amph on March 09, 2016, 07:37:07 AM

Quote from: ?? on ??

It might make a chaos if all users decided to withdraw their money from bank and that bank use fractional-banking system Roll Eyes

There's no problem if they don't get interest, but to take their money is too much. It can be categorized as stealing.

i'm not even holding anything in the bank, all in bitcoin, minus some dumping here and there to buy stuff that you can not find with bitcoin yet

they can go bankrupt for all i care, more bank going down, more possibility for bitcoin to shine

It is good that you are almost all in bitcoin. I would like to, but I am not so brave. Only small proportion of my wealth is in bitcoin.

calkob

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Activity: 1106

Merit: 521

I would never pay money to a bank in order for it to keep my money, i would rather purchase a couple of big dogs and a good alarm system, then store it under my mattress. Grin

Pab

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on the last EBC meeting Draghi lowered rates to 0 very symbolic and has increased QE to 80bln per month
But Switzerland bank is expected to rise rates above 0 negative rates has already created problems in financing business

KiwiParty

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★YoBit.Net★ 350+ Coins Exchange & Dice

The financial market does try to achieve something which should be the task of the politics.
Invest the money!
Don't stockpile it!
Look, we have ideal preconditions for making huge investments.
Medical sector, industrial, real estate.
We had never more knowledge in our civilization than today.
There is too much war, and endless waste. This era should pass.
Thats what the ECB tries to focus on, invest, create, work, do it!
There are many improvements to come, if we suceed in letting people work and achieve it.

This is rather a problem of the fiat, nor a pity for BTC, but for those who are blocking the path.

Meuh6879

legendary

Activity: 1512

Merit: 1012

Only trader buy bonds ... to resell in the day at the closed hour.
Bonds is like food supply ... they are a bubble like others.

Stupid market that it can print money for his benefice AND NOT for people happyness.

But things change now ...

http://imagizer.imageshack.us/a/img905/5278/7O0UbU.gif

Banks are already dead ...

countryfree

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Activity: 3066

Merit: 1047

Your country may be your worst enemy

Who will buy this bond?
It's the most stupid thing someone could do. You may as well flush your money in the toilet. Happily, there are other options. In Germany or Switzrland, it remains possible to have an account which generates positive interest.

pitham1

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Activity: 1232

Merit: 1000

This hot money will just flow to countries where the risk adjusted returns are moderate.
For all you know, the negative interest rates are just increasing house prices in some developing country.

mkc

hero member

Activity: 517

Merit: 501

I think this is good for Bitcoin and gold. One of the argument fiat is better is that fiat carries interest. You make a little bit money when you put money in the bank.
Now with negative rate, you have to stall cash in home, like Bitcoin. However, it is so much easier to spend Bitcoin than cash. Most today's bill are paid over Internet, or writing a check. If you not put cash in bank, you can not write a check, you can not online bill pay. If your credit card company, water, waste handles Bitcoin, you don't need fiat.

I think this is vastly bullish for Bitcoin, let us see how this play out.

knowhow

hero member

Activity: 560

Merit: 500

Well that can really happen but ,we dont know if more banks fail ,bitcoin will get a bigger interest or more investment.If another group of people loose their saving against the banks they need to find a way to protect their capital bitcoin can be the answer as they can invest all into gold and silver.

Amph

legendary

Activity: 3248

Merit: 1070

Quote from: ?? on ??

It might make a chaos if all users decided to withdraw their money from bank and that bank use fractional-banking system Roll Eyes

There's no problem if they don't get interest, but to take their money is too much. It can be categorized as stealing.

i'm not even holding anything in the bank, all in bitcoin, minus some dumping here and there to buy stuff that you can not find with bitcoin yet

they can go bankrupt for all i care, more bank going down, more possibility for bitcoin to shine

unamis76

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Activity: 1512

Merit: 1012

Times like these just make me wish we just dumped fiat...

Denker

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Activity: 1442

Merit: 1016

Quote from: avikz on March 09, 2016, 12:08:22 AM

That's a really worrying news for the so-called developed countries. It's really sad that people is paying to the bank for protecting their own asset. It will lower the money circulation in the economy and purchasing power of general people will decrease. It will also lower the production rate of factories as demand will be lower. That will lead to job cuts and will further worsen the scenario.

Simple rule of economy.

Don't keep your money on those bank accounts.Simple is that.
As long as cash is not abolished this is the only option you have and therefore you should make use of it.

SFR10

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Activity: 2968

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Crypto Swap Exchange

Unfortunately it seems that the likely outcome for every country, in the near future. All the country I'm in, still has positive interest ratings, this year alone it was reduce 2-3% alone and from the looks of it, their in the same path as few others that went with negative interest rates lately and this will leave us with BTCitcoin and as result, more demand will surely increase it's value so overall the situation )for us on board) is somehow still a win - win perhaps, as opposed to others that only have funds in fiat.

tobacco123

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Very soon bitcoin will be the only economy without negative interest rate. Tongue

Jet Cash

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Quote from: NorrisK on March 09, 2016, 02:13:25 AM

It is a shame that consumers will never get negative interest rates on their loans and that in the end they probably end up paying more tax over those 'profits' anyways.

I'm sure they will get negative rates on their savings though, and I bet the gov. won't give tax rebates on that.

NorrisK

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Quote from: Kakmakr on March 09, 2016, 02:01:08 AM

Extreme problems require extreme solutions, and the fiat system seems to think negative interest rates will be the answer to all their problems. They will do anything to stimulate a dying cow and milk it, until the last drop. They should rather address the real issue and that is the role banks are playing in the problem we have now. People are given loans and debt they cannot pay, and the central banks are printing fiat money like toilet paper.

I agree that banks should take more care about how loans are given and I see that happening in The Netherlands. You cannot take a loan for a random reason here. You need a good one and even than the bank can say no to you easily. Usually it needs to be part of an investment in your own company or be part of your mortgage to buy a kitchen for example.

Buying a car or a tv is not a reason to get a loan here and is limited to your credit card (~2500 euro) or debt limit (usually ~1000 euro) on your checkings account. After that you are completely out of luck if you don't have your finances in order.

It is a shame that consumers will never get negative interest rates on their loans and that in the end they probably end up paying more tax over those 'profits' anyways.

Topic: Negative interest rates continue: German bank first nonstate borrower <0% bond (Read 1262 times)