Negative Interest Rates: The Very Disturbing Implications

Will negative rates pull the global economy out of its funk? Probably not. But they will certainly have a cascade of negative effects.

Virtually no one -- including central banks -- understand the ramifications of negative interest rates. But they're here, in several parts of the world, and may be coming to the U.S. as well. I encourage you to read my friend John Mauldin's insightful piece on this largely uncharted territory.

Negative Interest Rates: The Very Disturbing Implications

by John Mauldin
March 30, 2016

“No one will lend at a negative interest rate; potential creditors will simply
choose to hold cash, which pays zero nominal interest.”
– Ben Bernanke, 2009

“I think negative rates are something the Fed will and probably
should consider if the situation arises.”
– Ben Bernanke, December 2015

“In theory there is no difference between theory and practice.
In practice there is.”
– Yogi Berra