Originally Posted By: Jeanette_Isabelle
Originally Posted By: Russ
IMO a lot of what is happening in the financial world makes no sense — negative interest rates?? — paying someone to take a loan?? WTH

Negative interest is needed when money is not moving as it should. We don't have that problem now — quite the contrary. If the New York Federal Reserve has to print $75 Billion a day, we have the opposite problem.

Removed.

Jeanette Isabelle


A lot of countries unfortunately have instituted negative rates. Canada / US seem to be in the minority bubble where we have positive but low rates.

What's worse is that after the 2008-09 collapse, a lot of the banks had to increase their reserve percentage as per Basel III and they also instituted BAIL IN programs. This would allow a financially panicked bank to pluck the money out of your bank accounts and use that to shore up their reserves. Basically legalized theft to support Trillion dollar banks!

I have been watching Deustche Bank and their huge derivative exposure. If DB goes down, the impact to other banks will be a domino effect. I am pretty sure DB is going to fall before the end of the year and catch a lot of people off guard.

Last month I parked my money into more conservative funds, precious metals, and near money equivalents to soften the blow.


Edited by chaosmagnet (10/08/19 01:06 AM)