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| Neg rates would entice banks in general to pull Fed Excess funds...and shove it into the market some way somehow to make some profit on those 3-4 trillion held by the Fed as Excess funds...........
Fed always said, they don't want to make the same mistake as in the 30's--------they want to keep pumping liquidity into the system, at the risk of currency destruction. They felt FDR stopped short of liquidity expansion way too soon in the 30's and brought on the Great Depression.
What they don't realize is a similar expansion of govt regs now mirrors the 30's..........now all we need is a Smoot-Hawley type act to slow trade. | |
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Japan goes negative interest.
