Negative borrowing rate - future collapse?

Current Economy and Sustainable Development-compatible? GDP growth (at all costs), economic development, inflation ... How concillier the current economy with the environment and sustainable development.
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Negative borrowing rate - future collapse?




by ENERC » 13/09/19, 21:15

I had never thought possible that the borrowing rates would become negative (pay to loan).
But it gets worse and worse:
Because we must act, and the economy of the euro zone is showing signs of weakness, Mario Draghi announced Thursday, 12 September, a series of monetary stimulus measures: lower deposit rate of - 0,4% to - 0,5%, revival of the program of purchase of titles ("Quantitative Easing", or QE, in English) and promise not to increase the rates as long as inflation will not rise.

https://www.lemonde.fr/economie/article ... _3234.html

I read that French banks lose 7 Md € per year in this case. (yes, pay to lend)
And if the French State renegotiated all of its debt, that would be € 2200 billion x 0.5% -> 11 billion (still ...)
11 Mds € recipe to borrow ... We believe to dream - but no!

For now the banks have made up for the companies. For example: for a company of one person (craftsman, liberal profession), bank fees for a gross income of 50 000 € / year have increased from 400 € to more than 600 € per year in just two years. : Shock:
But there is the arrival of cheaper online banks 5x (one of them one to capture more than 50 000 companies in a very short time). The financing of the state debt via the banks by the very small companies is coming to an end.

The next pigeon will be the particular: yes, when you have to pay the state with negative rates to finance your debt, you have to find some cash somewhere.
It's on: we will seriously shake bank charges. (it has already started)

It shows that the system is completely out of breath :frown:

Draghi can dream .... it will not pass. People will revolt against spoliation by banks. Yellow Vests V2 :D
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Adrien (ex-nico239)
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Re: Negative borrowing rate - coming collapse?




by Adrien (ex-nico239) » 26/06/20, 02:14

How to buy Tiffany on the back of the Covid

When the ECB subsidizes billionaire Bernard Arnault
https://www.mediapart.fr/journal/france ... rd-arnault
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