Thought I would post some positive news :) U.S. Banks to charge for deposits

[Ron~Popeil]

I don't think that negative interest rates are viable for the major banks. That will destroy their short term holdings, as people would rather keep money in their hands or in the form of bonds, FD.etc.

People have a way of not behaving in the way central planners think they should. The fed was counting on the use of credit to ramp up the economy after 2008. Americans actually unloaded debt during the aftermath of the meltdown.

[niothor]

I don't think that negative interest rates are viable for the major banks. That will destroy their short term holdings, as people would rather keep money in their hands or in the form of bonds, FD.etc.

No , they won't
An ""experiment" already happened in Denmark and nothing really happened , no disaster but also no real recovery:

In July 2012, the National Bank of Denmark imposed a negative rate of minus 0.2 percent on bank deposits stored at the central bank.

Contrary to some fears, the move did not create chaos in financial markets or cause bank computers to crash as they struggled to process data for which they were never programmed. The Danish central bank issued plenty of warnings that a negative rate was on the way, giving banks time to prepare. The E.C.B. has sent its own signals that it intends to make such move.

“Zero is just a number,” Mr. Rasmussen said. “The world goes on.”

http://www.nytimes.com/2014/06/04/business/international/european-central-bank-chief-looks-for-silver-bullet.html?src=rechp

[Swordsoffreedom]

I don't think that negative interest rates are viable for the major banks. That will destroy their short term holdings, as people would rather keep money in their hands or in the form of bonds, FD.etc.

People have a way of not behaving in the way central planners think they should. The fed was counting on the use of credit to ramp up the economy after 2008. Americans actually unloaded debt during the aftermath of the meltdown.

It makes sense the best time to lower your debt is when the interest rate is lower since you can attack the principal instead of just paying interest on the payment.

Similar to a mortgage if you only do the minimum payment 80% goes to servicing the interest 20% to the principal on average.

[Ron~Popeil]

I don't think that negative interest rates are viable for the major banks. That will destroy their short term holdings, as people would rather keep money in their hands or in the form of bonds, FD.etc.

People have a way of not behaving in the way central planners think they should. The fed was counting on the use of credit to ramp up the economy after 2008. Americans actually unloaded debt during the aftermath of the meltdown.

It makes sense the best time to lower your debt is when the interest rate is lower since you can attack the principal instead of just paying interest on the payment.

Similar to a mortgage if you only do the minimum payment 80% goes to servicing the interest 20% to the principal on average.

Yes. I paid off all of my own debt at the time as well. Ironically I actually have more material wealth now that I buy with cash than I ever did when I had large lines of credit at my finger tips.

[FFrost]

Stuff the banks. Convert all your cash to Bitcoins! If every does this at the same time bitcoin will go over the roof the cash out and buy bonds 

[5flags]

I'd rather pay bank fees and have the bank simply sit on my money, than have "free" banking and have the bank reduce the value of my fiat holdings by artificially inflating the money supply by engaging in fractional reserve banking.