The Madness of Central Banks: One need not have a PhD in economics to recognize that negative interest rates are financial lunacy. Who in their right mind would actually pay someone to take out a loan? But negative interest rates are far worse than that. By eradicating interest rates, the #ECB has eviscerated the #banking business model in Europe. Banks generate profits through either lending at interest or investing for interest. Without interest rates, the traditional banking business model cannot generate any profits--witness the travails of German banking giants Deutsch Bank and Commerzbank. Banks and bankers as a whole are quite "systemically important". Without banks, business #finance cannot happen--again, one needs no deep education economics or accounting to understand that. Yet the ECB has, through intentional and deliberate acts of financial sabotage, put European banks on a path to extinction. Stupidity or Malice? The world wonders. https://www.zerohedge.com/political/mish-negative-interest-rates-are-socio-political-poison #news #economy
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