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https://www.reddit.com/r/PeterExplainsTheJoke/comments/1w4api1/petah/p77z1f3/?context=3
r/PeterExplainsTheJoke • u/Melodic_Judge_129 • 9h ago
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<negative interest rates How does that work? I've heard the term but don't understand how that would work.
2 u/ChocolateNo3010 5h ago As I understand it for savings, you are charged for keeping money in a bank account, so rather than getting interest you lose money. 2 u/VicariousInDub 5h ago Wouldn’t that just lead to everyone running to the banks and trying to take their money out and therefor basically ruin the banking system? 1 u/OdessyOfIllios 4h ago Possibly and probably for those who understand what ZIRP or negative real rates implies. Having money in a savings account would be silly. The value of a dollar today would be more valuable than the value of a dollar tomorrow in such a situation. Would be a good environment to be buying equity.
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As I understand it for savings, you are charged for keeping money in a bank account, so rather than getting interest you lose money.
2 u/VicariousInDub 5h ago Wouldn’t that just lead to everyone running to the banks and trying to take their money out and therefor basically ruin the banking system? 1 u/OdessyOfIllios 4h ago Possibly and probably for those who understand what ZIRP or negative real rates implies. Having money in a savings account would be silly. The value of a dollar today would be more valuable than the value of a dollar tomorrow in such a situation. Would be a good environment to be buying equity.
Wouldn’t that just lead to everyone running to the banks and trying to take their money out and therefor basically ruin the banking system?
1 u/OdessyOfIllios 4h ago Possibly and probably for those who understand what ZIRP or negative real rates implies. Having money in a savings account would be silly. The value of a dollar today would be more valuable than the value of a dollar tomorrow in such a situation. Would be a good environment to be buying equity.
Possibly and probably for those who understand what ZIRP or negative real rates implies.
Having money in a savings account would be silly. The value of a dollar today would be more valuable than the value of a dollar tomorrow in such a situation.
Would be a good environment to be buying equity.
1
u/BigWhiteDog 5h ago
<negative interest rates How does that work? I've heard the term but don't understand how that would work.