The European Union is going to hell in 3... 2... 1... (1 Viewer)

[wannaspoon]

Ok, so, the European Central Bank has imposed a negative interest rate on their bonds... the EU's interest rate is now sitting on -0.10%... what does this mean, the ECB will literally be paying lenders interest to loan out Euro's... cliff notes...

http://www.afr.com/p/markets/ecb_slashes_rates_to_below_zero_p5aSqrIS99eGMkry11 BfjP

In short, this single action has destroyed Europe's chances of any economic recovery... Yay for economic Armageddon in Europe...

With that said, is the dream of a united Europe going down the shitter??? Discuss...

 

[Cleavage]

Ok, so, the European Central Bank has imposed a negative interest rate on their bonds... the EU's interest rate is now sitting on -0.10%... what does this mean, the ECB will literally be paying lenders interest to loan out Euro's... cliff notes...

http://www.afr.com/p/markets/ecb_slashes_rates_to_below_zero_p5aSqrIS99eGMkry11 BfjP

In short, this single action has destroyed Europe's chances of any economic recovery... Yay for economic Armageddon in Europe...

With that said, is the dream of a united Europe going down the shitter??? Discuss...

I've read quite regarding negative interest rates that suggests otherwise.

Why do you believe this will put EU through the shitter?

 

[isildurrrr1]

Ok, so, the European Central Bank has imposed a negative interest rate on their bonds... the EU's interest rate is now sitting on -0.10%... what does this mean, the ECB will literally be paying lenders interest to loan out Euro's... cliff notes...

http://www.afr.com/p/markets/ecb_slashes_rates_to_below_zero_p5aSqrIS99eGMkry11 BfjP

In short, this single action has destroyed Europe's chances of any economic recovery... Yay for economic Armageddon in Europe...

With that said, is the dream of a united Europe going down the shitter??? Discuss...

you realize negative interest rates make borrowing cheaper and incentivizes companies to invest more into production right.

 

[Phaze]

Ok, so, the European Central Bank has imposed a negative interest rate on their bonds... the EU's interest rate is now sitting on -0.10%... what does this mean, the ECB will literally be paying lenders interest to loan out Euro's... cliff notes...

http://www.afr.com/p/markets/ecb_slashes_rates_to_below_zero_p5aSqrIS99eGMkry11 BfjP

In short, this single action has destroyed Europe's chances of any economic recovery... Yay for economic Armageddon in Europe...

With that said, is the dream of a united Europe going down the shitter??? Discuss...

Dude, so like here is the TLDR. Banks in Europe insist on keeping their cash in the Central Bank instead of investing it as they don't have that much confidence. By having negative interest rates they will end up paying money to keep their money stored in the bank. Therefore negative interest rates will act as a deterrent for these banks to store their money in the bank and will instead hopefully act as an incentive to fuel investment which in the most basic sense means more economic growth. (BASICALLY)

#UBS #ECODAY #FORTHEWIN

 

[wannaspoon]

**sigh**

It is encouraging dodgy lending, yet again... obviously nothing has been learnt from the thing that put them in that mess in the first place... therefore, it will kill off any chance of recovery in Europe...

 

[Phaze]

**sigh**

It is encouraging dodgy lending, yet again... obviously nothing has been learnt from the thing that put them in that mess in the first place... therefore, it will kill off any chance of recovery in Europe...

Ummm. Maybe do some research.

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[isildurrrr1]

**sigh**

It is encouraging dodgy lending, yet again... obviously nothing has been learnt from the thing that put them in that mess in the first place... therefore, it will kill off any chance of recovery in Europe...

lol

 

[Phaze]

@wannaspoon http://www.abc.net.au/news/2014-06-...ve-interest-rates-markets-edge-higher/5504808

 

[wannaspoon]

@wannaspoon http://www.abc.net.au/news/2014-06-...ve-interest-rates-markets-edge-higher/5504808

really going to get a valid assessment of the effects of such monetary policy in a few days

Here is why I think it is shit...

It is punishing the financially prudent: In effect, what will occur is an almost punitive measure to those who may use long term deposits to fund things like: retirement, education savings and an assortment of other sundry investments... It is borderline theft, based on the outlandish justification that you're not spending your money... That's rich, this is coming from an institution that is demanding austerity from a collection of debt ridden participants...

The Debt Ridden Participants: the interest is set for ALL members states of the EU... what this is providing is a line of cheap credit to those who have chronically mismanaged the advantages of a cheap line of credit... It has already been proven what a line of cheap credit can do to countries like Greece... Effectively, what it is simply doing is opening the door to allow for borrowing to those who are financially imprudent... Not only this, many of these EU members have unemployment well over 20%... In turn, prudent consumers will be few and far between... In order to avoid fees imposed by the ECB, they will loan to the imprudent and choose to neglect risk, thus, increasing volatility... This is NOT Denmark, this is a house of cards...

those are just some... there's a collection of other concerns... eg: the fact that it has never been done on this scale before and the consequences of the unknown, etc...

who knows, with some divine intervention, it might work... I, however, doubt it...

 

[Gary_Oak]

Let europe destroy itself.... just like how labor want us to suffer the same fate as greece....

lol

 

[Phaze]

Let europe destroy itself.... just like how labor want us to suffer the same fate as greece....

lol

Not sure if SRS...

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[Gary_Oak]

Not sure if SRS...

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I am SRS..... you don't think a poodle would be that SRS.... your in for lolz if you don't

 

[Phaze]

I am SRS..... you don't think a poodle would be that SRS.... your in for lolz if you don't

I refuse to believe that it's legit Must be troll! Just look at that signature.

 

[SylviaB]

@wannaspoon http://www.abc.net.au/news/2014-06-...ve-interest-rates-markets-edge-higher/5504808

are you posting this because of the market response aspect?