What Can One Expect from Negative Interest Rates?

"Since I guess we don't yet know exactly what they mean by this three tier system, we can only guess.
My guess is that banks will still get positive rates on reserves while the 'little people' get neg rates. That would be so central bankish nowadays."

http://www.zerohedge.com/news/2016-...ult-more-currency-wars-and-global-growth-slow

 

Has the Fed ever once correctly forecasted a market/economic crash?!

 

I think this is nonsense, and what is the idea behind negative interest rates? They think that people will increase spending? No, they'll just get their money out of their banks.

 

What I'm more interested in knowing is what this would mean for the mortgage lenders. Can I refinance my mortage at negative interest rate? If so, would my lender pay me interest?

 

they will spend their money on foreign goods.

it is typical 3rd world government behavior. instead of fiscal policies which encourage business to invest they think if the masses have more paper money businesses will expand. it doesn't work. business realize there is an inevitable down cycle coming and refuse to make investments in productive facilities . these policies were tried in argentina and brazil in the 80's + 90's. the result was hyperinflation.

 

the (m)asses are still paying 20% on their credit cards.

 

A year ago in Denmark you could.
http://www.zerohedge.com/news/2015-01-30/denmark-you-are-now-paid-take-out-mortgage

 

There's no real appetite for debt in the world so this may all be just the beginning of the NIRP experiment.

 

Well if you pay me to take on debt, then I will take as much as you can give me and just hoard it. Can I do that anywhere in the world currently?

 

That's exactly my point.