Can Interest Rates go Negative?

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Can Interest Rates go Negative?

We see several countries using negative interest rates as way
to improve their economy. When Central Banks cut their rates it makes other
investments look more appealing, and when they lower the rates so low that they
are charging to hold your money then they become really unappealing, Most
people flee Deposit products and seek bonds or dividend paying stocks when
banks no longer can help them grow their money. This in turn can improve the
economy of a country ...

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Fed to Lower Rates

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Fed to Lower Rates

Why does the Fed keep lowering rates?

We have seen the Fed cut interest rates to help stimulate
the economy. By lowering the cost of borrowing people will take on more debt
and increase their spending. However, the real winner may be businesses as
their cost of borrowing will go down and they can invest into new equipment or
expanding with much lower cost of managing their debt.

What could be the trouble with such low rates? Well if rate
stay low ...

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