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Bank of America to offer negative interest rates!
- Thread starter zx13y1
- Start date
Playa Play
New member
[No message]
Kristen Sauerborn
New member
[No message]
Codswallop
New member
you know, its funny you think the capital BELONGS to the corporation. not to sound too communist, but somewhere along the way that capital had to be accumulated from the labor of people.
the people in this country are relying on the cycling of capital to keep the economy going. it basically amount to these "corporations" extracting money from the people in this country to appease their stockholders, and then holding the american people hostage by saying" vote for who we like, or we will tank the economy!"
I think that stinks.
nope.
the people in this country are relying on the cycling of capital to keep the economy going. it basically amount to these "corporations" extracting money from the people in this country to appease their stockholders, and then holding the american people hostage by saying" vote for who we like, or we will tank the economy!"
I think that stinks.
nope.
Mr Mysterious
New member
Yes, that would be extremely helpful right now. High interest rates would be helpful with terrible growth outlooks.
And while they've set lower rates this wouldn't be an issue if companies/investors/hedge funRAB weren't pulling cash out of the markets to sit on in an effort to stay so liquid that they can move quickly in a volatile market.
The underlying issue here has little to do with the rate the fed sets. The issue is that the economy is still flat right now and the markets are seeing huge swings due to uncertainty around the globe (as ISO was mentioning). Thus it's costing banks big $$$$ to hold those cash reserves for these larger institutions. The banks react by off-setting the fees so that they can keep their money safe.
If there wasn't a fed this would still be an issue.
One of the primary activities of banks, loaning money, is not making them sufficient funRAB to oRABet their costs such as they still can make money to remain in business. As such it is no longer beneficial for them to sit on large amounts of cash, and actually costs them money. Thus they're charging to hold large sums of cash.
The fed certainly could jack up rates to help out companies sitting on stacks of cash, but that is counter normal market operations.
Banks(without the fed around to control rates) would have to charge more to hold very large reserves or valued objects when lending grinRAB slower. The bank becomes more of a vault than a lending service and as such their sources of income shift away from interest from lending to charging to hold.
The bank neeRAB to remain in business somehow and as their priorities shift, so too does their source of income.
And while they've set lower rates this wouldn't be an issue if companies/investors/hedge funRAB weren't pulling cash out of the markets to sit on in an effort to stay so liquid that they can move quickly in a volatile market.
The underlying issue here has little to do with the rate the fed sets. The issue is that the economy is still flat right now and the markets are seeing huge swings due to uncertainty around the globe (as ISO was mentioning). Thus it's costing banks big $$$$ to hold those cash reserves for these larger institutions. The banks react by off-setting the fees so that they can keep their money safe.
If there wasn't a fed this would still be an issue.
One of the primary activities of banks, loaning money, is not making them sufficient funRAB to oRABet their costs such as they still can make money to remain in business. As such it is no longer beneficial for them to sit on large amounts of cash, and actually costs them money. Thus they're charging to hold large sums of cash.
The fed certainly could jack up rates to help out companies sitting on stacks of cash, but that is counter normal market operations.
Banks(without the fed around to control rates) would have to charge more to hold very large reserves or valued objects when lending grinRAB slower. The bank becomes more of a vault than a lending service and as such their sources of income shift away from interest from lending to charging to hold.
The bank neeRAB to remain in business somehow and as their priorities shift, so too does their source of income.
Queen_of_Apology
New member
Would you rather bank interest rates be really high right now?
No, I don't.
Your concerns were that it had NEVER HAPPENED BEFO
Which is patently wrong. It's been happening for a LONG time. It costs money to support the infrastructure, interest-bearing accounts, and staff to run a bank. Did you think people should just have free access to a private service?
Your concerns were that it had NEVER HAPPENED BEFO
Which is patently wrong. It's been happening for a LONG time. It costs money to support the infrastructure, interest-bearing accounts, and staff to run a bank. Did you think people should just have free access to a private service?
Oh my fucking shitting God! Are you seriously not aware of the difference between maintaining a MINIMUM balance v. being CHARGED for having TOO MUCH MONEY in the bank? FUCK! SO FUCKING STUPID!!!! I AM ALONE ON THE EARTH....FUCKING FUCKING FUCK FUCK FUCK...STUPID!
OK, now that I have vented: You are just too durab to give any credence.
Shit. Bye.
OK, now that I have vented: You are just too durab to give any credence.
Shit. Bye.
michelleb256
New member
why you so mad tho
"Seriously" I am not opposed to any institution charging money for anything. I have merely been pointing out the incredibly novel...a bank has now begun CHARGING people for keeping their dollars.
One must, in such circumstance, begin to question the value of "dollars."
Perhaps if you pull that little tiny malignancy you imagine to be a penis long enough, your sperm will eventually emerge and grow some brain cells. I dunno...stranger things have happened.
One must, in such circumstance, begin to question the value of "dollars."
Perhaps if you pull that little tiny malignancy you imagine to be a penis long enough, your sperm will eventually emerge and grow some brain cells. I dunno...stranger things have happened.