A "bold move."

Fun with supply and demand.
Tom Palven
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A "bold move."

Post by Tom Palven » Sat Jan 30, 2016 11:34 am

Like the Flying Spaghetti Monster, central banks work in strange and mysterious ways, their wonders to perform .

Reuters labels this latest action "a bold move."

http://www.reuters.com/article/us-globa ... SKCN0V701J
If one can be taught to believe absurdities, one can commit atrocities. --Voltaire

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ElectricMonk
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Re: A "bold move."

Post by ElectricMonk » Sat Jan 30, 2016 6:05 pm

It's not bold, it's essential: banks are no longer in the banking business: the no longer loan money, only park some of it at central banks and gamble with the rest.
This moves forces the banks to start doing what they are supposed to do, again.

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TJrandom
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Re: A "bold move."

Post by TJrandom » Sat Jan 30, 2016 8:02 pm

Not good for retirees – with cash ready savings and only fixed income. Banks are now passing on those negative rates by charging for savings accounts.