Bank of America to offer negative interest rates!

Large amounts of cash on hand is not a good thing for banks, this is true. But note that corporations who find the political climate in flux will explore options. The corporation is waiting to determine whether they will do better expanding elsewhere, India, China, fucking North Korea, or Belize...they don't care. They want to see their tax base settled. They want certainty about costs of hiring. They want to know the cost of political decisions, regulations, taxes, mandatory health care taxes, which will affect their bottom line.

Corporations are not "sitting" on their money. They are calculating their next move in order to achieve the highest profit margin for themselves and their shareholders.

They are waiting for decisions by the state before they make costly moves elsewhere. It's a nurabers game...as it should be.

And if John Doe dislikes being employed by the corporation, the corporation is free...or should be...to move to more fertile fielRAB.
 
Corporations have historically been concerned about, and have reacted to, the likely price of oil based upon governmental policies. Corporations don't give a flying fuck about the NYSE or FTSE when compared against what will DIRECTLY affect their bottom line.

Corporations that survive don't give a shit about anything but their bottom line and what will affect it. Regulations affect the bottom line. Taxes affect the bottom line. Obamacare affects the bottom line.

They're waiting for Obama to get voted OUT. They're waiting for anyone but Obama.
 
no, the government can afford to pay it. they aren't because they are using it as monetary stimulus since fiscal stimulus is unpopular politically and uncertain. markets hate uncertainty.

But even still, that really doesn't explain why now, after QE is not happening.....the yielRAB are sinking on T-notes to extremely low levels.

while I think QE is misguided, your analysis is nowhere close.
 
Why is this a big surprise? It's very little to do with the government and everything to do with a sour economy.

People are fleeing from the markets because the economy is still flat.
It costs money to hold money in banks that can't be lent when the economy is flat.
Banks charge large holders a fee to cover their losses from holding that cash.
 
I hope the competition is this stupid/shortsighted/retarded to not figure out how stock prices could affect aggregate demand.




if every company frets and frets about their bottom line, their bottom line will be affected by the paradox of thrift.

but what do people expect?

we have been pumping fear into peoples lives about what Obama MIGHT do that they are enough people who don't follow politics who believe it for reasons that I don't understand.
 
Not in the least. I don't have an account with "cash deposits over $50 million."

If I did, AND I banked with that one bank, I might.


It also depenRAB on what they mean by "cash deposits over $50 million". Are they considering a cash EFT of $50 million the same as someone backing a fleet of armored trucks up and unloading $50 million in $10's and $20's the same?

Doing an electronic transfer wouldn't seem to warrant the 0.13% transaction fee, but providing security, etc for that much physical cash ... well, one might be able to justify that charge.

Ultimately, the people who make those $50 million deposits who get to "vote with their feet". If they don't care, I'm sure other banks will gladly take their business. If they don't care, then it really isn't an issue.
 
Starting? You are really showing that you are full of bullshit about your age, free checking/savings accounts are a new thing. And that link is about a brokerage firm, not a bank.


It cost money for banks to hold large amounts of cash.
 
Back
Top