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Old Yesterday, 08:36 AM
 
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The European Central Bank cut its key interest rate and launched a sweeping package of bond purchases Thursday that lays the ground work for what is likely to be a long period of ultraloose monetary policy, jolting European financial markets and triggering an immediate response from President Trump.

The ECBís pre-emptive move was aimed at insulating the eurozoneís wobbling economy from a global slowdown and trade tensions.

It is the ECBís largest dose of monetary stimulus in 3Ĺ years and a bold finale for departing President Mario Draghi, who is committing his successor to negative interest rates and an open-ended bond-buying program, possibly for years.

https://emailshare.cmail19.com/t/n/d...fccc0-l-d-r-l/
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Old Yesterday, 11:01 AM
 
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Here is an article about the same with a less-weird link.

https://www.telegraph.co.uk/business...rates-reloads/
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Old Today, 07:43 AM
 
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https://www.wsj.com/articles/ecb-lau...te-11568289016
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Old Today, 07:56 AM
 
Location: NE Mississippi
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Thanks for the info, but as a non-subscriber I could not read the full article.


I find negative interest rates a little puzzling and even a little concerning. That's because I use T Bills to store money. Right now, I get paid around 2% annually for the 4 Week T Bill and since I need money from time to time it works out very well.
If interest rates went negative it may actually pay a little more to keep the money in my mattress, or in a tin can somewhere! I am being a little facetious, of course, since retail interest rates don't really go to zero, but time deposit rates in Japan are paying just a few 10ths of a percentage annually.
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Old Today, 08:13 AM
 
Location: Tennessee
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Where do they expect the next round of monetary stimulus to come from when the next recession hits?
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Old Today, 08:57 AM
 
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Quote:
Originally Posted by Listener2307 View Post
Thanks for the info, but as a non-subscriber I could not read the full article.
Try the link I posted in post#1 - it is to the same article and should be visible to you. Please let me know if it isn't and I'll try another method.
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Old Today, 12:23 PM
 
Location: Washington Park, Denver
7,097 posts, read 6,734,184 times
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Quote:
Originally Posted by Serious Conversation View Post
Where do they expect the next round of monetary stimulus to come from when the next recession hits?
They are seeing a massive savings glut. They are hoping this gets people and firms to start investing instead of saving.
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Old Today, 12:28 PM
 
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"...it may actually pay a little more to keep the money in my mattress, or in a tin can somewhere!"
we are kind of doing that now.
we bought a safe last year to store cash money.
we had two safe deposit boxes at our bank and
wanted to rent more, but they had no openings
and a long waiting list. we are not the only ones.
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