"My Bank In Denmark Just Offered Me A Negative Rate Of Interest To Borrow Money" | WHAT REALLY HAPPENED

"My Bank In Denmark Just Offered Me A Negative Rate Of Interest To Borrow Money"

Authored by Alex Moneton via SovereignMan.com,

Yesterday I called my bank in Denmark, Nordea, and couldn’t believe what they told me...

They offered to lend me money at MINUS 0.12% for a ten-year mortgage.

In other words, the bank would PAY ME to take out a loan.

Of course, as a Sovereign Man editor, I’ve written a lot about negative interest rates. But most of these cases were always reserved for big banks or institutions.

That no longer seems to be the case…

Now, negative interest rates ARE the norm. Thousands, if not tens of thousands of Danes will go out and take out mortgages that will pay themevery month.

This is completely mind-boggling to me. But it just highlights how broken the financial system really is.

Webmaster's Commentary: 

Absoflippinglutely unbelievable.

Comments

Just because negative interest was never attempted before...

George

... it doesn't mean it can't work. If the opposite approach or charging people money to borrow money sucked the money out of the productive sector, perhaps doing the opposite for a while with negative interest will correct the distortion? It's worth a try...

I am actually glad that the financial sector is willing to try nonstandard ideas like this. Good, they haven't ossified into an orthodoxy yet. We are not toast yet.

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