Silvio Gesell is the founder of NIRP, more than 100 years ago: https://en.wikipedia.org/wiki/Interest_rate#Negative_interest_rates https://en.wikipedia.org/wiki/Silvio_Gesell
Does anyone else think NIRP is a joke? Its just another attack on the middle class and people that have sensibly managed their finances. It also forces banks to lend. But the reason they wont lend any more is because they have been regulated out of business and and cant risk lending any money in case they dont get paid back in their entirety. SO now governments forcing them to get money off their balance sheets. How is that going to lead to sensible low risk investments?
Ok, I found it again, here's it. It's even 93% !: "The Fed caused 93% of the entire stock market's move since 2008: Analysis" http://finance.yahoo.com/news/the-f...et-s-move-since-2008--analysis-194426366.html And here's a comment on that: http://www.valuewalk.com/2016/03/comment-replies-fed-caused-93-entire-stock-markets-move-since-2008/
Exactly! So government stops fixing the market and we are left with -93% on the 08 move to now + real growth in the economy. There's been a bit. But there's a huge gap. And that's the reason there's inequality. Asset holders propped up in an artificial government bubble so there's no need for any real growth. I don't know what that's meant to be but isn't the free market capitalism
No one has talked about solutions. Your best hedge is to invest in physical gold. Worst case, you can always bury it in multiple places. Invest in companies such as PM and WYNN who will benefit from higher minimum wages.
The article's theme is complete bs ( I won't even read it, it's a nonstarter ), but you are free to believe what you want. In reality, the 2008/2009 crash was way overdone as most crashes are. A legit catalyst ( the subprime fiasco ) created the crash, and severe panic fueled it. Many strong business got dragged down with the others and rebounded afterwards. For example, you can claim that an AAPL is "overvalued", but the P/E and yield suggest otherwise, that AAPL is actually cheap on a normal historical valuation basis. And AAPL is a component of US indexes. My point is, the baseline for what US markets were worth in 2008/2009 is far higher then what they were priced at after the crash, even if one thinks QE inflated the subsequent bull move. Sure, some companies ( e.g. US banks ) had terrible balance sheets and deserved to get hammered, but they only represented a portion of the overall markets. For example, Canadian banks got hammered briefly and there was nothing at all to justify it. If you want to believe doomsday theories, you'll not react well to market conditions moving forward. You'll either miss out on new upward movement ( if the bull continues ), or fail to re-enter markets if there is a major correction. US markets will never hit the baseline that you and some posters like S2007S believe in. Again, you are free to follow your gut, just don't get mad if you are wrong.
There isn't a big socialist movement globally, but there is a lot of fear in the US over many themes that just aren't true. For example, there are many posters on here who think Canada is some big socialist mecca that scares them. In reality, Canada is very similar to the US, it just chooses to be different on certain key points ( eg gun control, universal health care, race relations ). This doesn't make Canada a "socialist" country, except perhaps to eccentrics who see anything but an extreme far right laissez-faire economic system and social system as being socialist, which they seem to see as similar to communism. And the US system has in fact gotten far too extreme in nature, and is legit breaking down. Change must occur, and this scares some people.
The ECB began QE long after the Fed. These things take time and the ECB has a tougher job than the Fed. Be patient.