Bank Bail-Ins on their Way? Maaaaybe...

in #money8 years ago


With zero interest rate policies already happening in Japan, the winds of change have brushed up farther west to  the shores of the U.K. as Natwest warns businesses might have to pay to hold cash... Hmmm, let's examine.

Currently, UK policy only allows businesses to pay to hold cash at banks, but  A number  of  large banks including HSBC, The Post Office and First Direct  are already offering savings accounts with rates as low as zero. What is the next step as economies continue to support tightening lending policies? (http://www.telegraph.co.uk/news/2016/07/25/savers-fear-negative-interest-rates-as-natwest-warns-businesses/)

Think of this for a moment.... Over the past 6 years, Deutsche Bank's stock has been demolished from trading in the high $140's all the way down to $14 due to its disastrous derivatives book (the bomb waiting to happen). Italian Banks' bad debt currently equals 20% of the country's total GDP causing their shares to be slashed by a third (http://www.ft.com/cms/s/0/a594eb58-443c-11e6-b22f-79eb4891c97d.html#axzz4FZZi2u00), 

With Japan going negative, the Eurozone financially stressed out, and the US Equities markets being propped up by stock buybacks rather than R&D and hiring capital, (http://seekingalpha.com/article/3968290-stock-buyback-conundrum-will-companies-keep-much-longer) do you believe this model is sustainable? If so, for how long, and what, aside from a rape and pillage of savers would do so? Sound off!

#bailin #investments #economics #collapse #money #buybacks #NIRP #zirp #negative #wallstreet #japan #globalcollapse @dantheman @ned @whale #whale

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Steem power will be the only instrument paying decent interest in no time

I suppose that the zero rate is a road to nowhere.

The Uk consumers have enjoyed a no fee bank account for a long time, i cant see that changing to a compulsary fee one, anytime soon.
Bank interest rates arent quite zero here yet. A Cash isa maybe 0.75% but lloyds does an account giving 4% and TSB was once offering a 5% one.
Smart Consumers with time to research will always gravitate towards the best offers in the market.
I think/hope its still far to early for a cyprus style savings account raid.

Im currently more concerned with the USA's debt especially since its the world reserve curency.

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