European Central Bank imposes negative interest rates on banks

[Alan C.]

European Central Bank imposes negative interest rates on banks

 

The European Central Bank has made the unprecedented move of charging banks to deposit money in a dramatic attempt to inject life into the eurozone's flagging economy and ward off the threat of a damaging deflationary spiral.In what marks an historic first for the troubled region, president Mario Draghi and his colleagues on the governing council cut the deposit rate to -0.1% from zero, meaning banks will now have to pay for the privilege of parking their money with the ECB.. . .The central bank is hoping the move will encourage banks to lend more to consumers and businesses to get the economy moving. It is the first time the ECB has imposed a negative deposit rate.. . .The central bank also cut its main interest rate to a new record low of 0.15% from 0.25%.

[fractional slacker]

In effect, we have negative interest rates here and now in the US. My mega bank used to offer free checking. Now I either have to jump through a bunch of hoops every month, have a large avg. daily balance, or pay a $10 a month account fee.They are very friendly and outgoing whenever I visit. They will say stupid shyte like "Is there anything we can do to make your experience with us better?"I say yeah, how about not charging me $120 a year for being poor. Instant deer in the headlighs.  One time they called the bank manager to throw him under the bus rather than admit they are just lackeys without a soul. We had a nice chat for about 15 minutes where I got him to admit he is just a PR manager for a corrupt system. Good times.

[shirgall]

There is a rumor that the US is preparing for a negative interest rate as well.

 

Forgive me quoting InfoWars http://www.infowars.com/economist-u-s-banks-preparing-to-charge-customers-for-deposits/ but even the National Enquirer does investigative journalism from time to time.

 

I lot of people have not realized that inflation is effectively a wealth tax as well.

 

As this spurs demand for the stock market, creating a bubble...

[FreedomPhilosophy]

This looks like evidence that the prior interventions failed and so it's time for more desperate measures that will only make things even worse.