Quote from: lunarboy on February 12, 2015, 06:22:19 PM

Quote from: domob on February 12, 2015, 06:01:48 PM

Quote from: lunarboy on February 12, 2015, 03:10:20 PM

The race to the bottom continues.

Sweden cuts it's interest rates to negative 0.1% and starts QE

http://www.nytimes.com/2015/02/13/business/international/sweden-cuts-interest-rate-and-announces-bond-buying-program.html

Quote

The decision means that Swedish commercial banks will be able to take out loans from the central bank at a negative interest rate. When the loans are due, banks will pay back less than they borrowed.

Does that only sound crazy to me or anyone else? I've already accepted the ECB's negative interest (i. e., fees) when banks park money at it. But at least a loan is still at positive 0.05%. So if I'm a Swedish bank, I'll just get a billion in cash, put it in my vault, pay back less and profit? How's that ever going to work out?

Nothing makes sense any more. Perhaps i'll nip over to sweden and get a couple of billion Krona loan then buy bitcoin with it. Huh

Feed the 1%
Bail in the 99%

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