Global central banks' repeated moves into negative interest rate territory would seem to suggest some positive outcomes.
But don't be fooled: Negative interest rates are a massive failure.
By Diane Alter, Contributing Writer, Money Morning -
Global central banks' repeated moves into negative interest rate territory would seem to suggest some positive outcomes.
But don't be fooled: Negative interest rates are a massive failure.
By Diane Alter, Contributing Writer, Money Morning -
Global central banks' repeated moves into negative interest rate territory would seem to suggest some positive outcomes.
But don't be fooled: Negative interest rates are a massive failure.
By Money Morning Staff Reports, Money Morning -
Negative interest rates seem to be working, according to Fed Vice Chair Stanley Fischer.
With decades of financial experience, one would assume the Fed vice chair would know what he's talking about.
But are negative interest rates really working? Here's everything you need to know...
By Jack Delaney, Sr. Cannabis Editor, Money Morning -
The Japanese economy grew in Q1 2016, but negative interest rates could cause long-term issues for the world's third-largest economy.
You see, central banks are making dangerous assumptions about negative-interest-rate policies facilitating economic growth and recovery.
By Diane Alter, Contributing Writer, Money Morning -
Investor concern over how the growing use of negative interest rates will destroy the market was underscored today after Japan left rates in negative territory and signaled further easing is likely.
Shocked by the news, global markets tanked.
Here's what you need to know about negative interest rates and how to take cover from them...
By Cameron Saucier, Associate Editor, Money Morning -
Negative Interest rates - a policy move that was once unthinkable for central banks - is quickly becoming the new normal to combat tepid economic growth.
Already, many European countries have switched to negative rates. Even U.S. Federal Reserve Chair Janet Yellen has toyed with the idea of using negative rates to fight the next recession in the United States.
By Diane Alter, Contributing Writer, Money Morning -
Even though the markets have rebounded in the first week of March, we just received a major new stock market crash warning sign today (Monday).
The Bank for International Settlements warned today that there's a "gathering storm" in the global economy. According to the bank, the storm is the result of global governments exhausting their monetary policy options.
By Shah Gilani, Chief Investment Strategist, Money Morning • @ShahGilani_TW -
The negative reception NIRP is getting from a lot of economists, analysts, and ordinary Americans doesn't diminish the likelihood the Fed will resort to this disastrous policy if it sees an emergency on the horizon.
And as sure as the next emergency's coming, so are negative interest rates. But don't believe for a second NIRP's going to save us. It's not. It's going to hurt - a lot.
There are only a few ways to protect yourself from the NIRP monster, so listen up...
By Diane Alter, Contributing Writer, Money Morning -
With several global central banks cutting interest rates in 2016, one question we keep hearing is, "What are negative interest rates?"
A negative-interest-rate policy (NIRP) is a monetary policy tool where nominal target interest rates are set with a negative value somewhere below zero. In short, the policy means banks and customers are essentially paying to park their money at financial institutions.
Negative interest rates have become much more popular in 2016, and Money Morning experts say the ramifications are huge for global stock markets.
Before we get to the global implications, here's how popular they have become...
By Keith Fitz-Gerald, Chief Investment Strategist, Money Map Report -
There are a good number of investors who believe that U.S. Treasuries - notes in particular - are bad for you and even worse for your money at the moment.
Why really doesn't matter... rates might rise, deflation, a bond market bubble, there's too much debt... they're riskier than you think, goes the argument.
All of those things are, well... true. Yet, I submit U.S. Treasuries are the one investment you cannot afford to be without at the moment for three reasons.
So grab a cup of joe and let me share something with you that escapes 99% of all investors.
By Michael E. Lewitt, Global Credit Strategist, Money Morning • @MichaelELewitt -
Nearly 500 million people now live in countries with official negative-interest-rate policies, and the United States may be next.
Seven years of zero interest rates have already severely punished savers; negative interest rates will finish the job by confiscating their capital for the mere privilege of depositing it in a federally licensed banking institution.
By Cameron Saucier, Associate Editor, Money Morning -
Negative interest rates used to be a thing of central banking fiction.
Now it looks like our Federal Reserve is considering negative interest rates, too.
At a testimony before Congress on Feb. 10, U.S. Federal Reserve Chairwoman Janet Yellen said there was nothing to prevent the United States from adopting negative-interest-rate-policy (NIRP).
NIRP signals a lack of confidence in an economy to investors. When the Fed turns to negative interest rates, it will encourage investors to exit stocks and stockpile their cash.
By Shah Gilani, Chief Investment Strategist, Money Morning • @ShahGilani_TW -
The soldiers of fortune at the U.S. Federal Reserve have devised an insidious plan to solidify their control over free markets and America.
This prescription envisions banks lending cheaply and consumers spending robustly, spurring economic growth and propping up beleaguered markets.
By David Zeiler, Associate Editor, Money Morning • @DavidGZeiler -
With each passing day, the irresponsible behavior of the world's central banks brings us closer to a full-blown global stock market crash in 2016.
We're already officially in a bear market.
But now the world's central banks have started to toss gasoline on the fire with a reckless new policy. It's already making things worse everywhere it's been tried.
Here's what the central bankers are doing - and why it's bound to trigger a stock market crash...
By Cameron Saucier, Associate Editor, Money Morning -
At a meeting with Congress on Wednesday, U.S. Federal Reserve Chairwoman Janet Yellen reiterated the Fed's plan to raise interest rates in the months ahead.
But her words also showed a hint of doubt.
Yellen discussed several concerns about the economy that could make the Federal Reserve hesitate on the timing of rate hikes. She also reemphasized the Fed's willingness to experiment with controversial monetary policy tools, including negative interest rates.
By Peter Krauth, Resource Specialist, Money Morning -
The U.S. stock market is tanking, but Japan's Nikkei 225 is soaring a little more than a week after the country's central bank announced a move to negative interest rates.
That's great for stocks, but it can absolutely demolish a country's long-term economic health. Naturally, the U.S. Federal Reserve is all for them, and it likely won't be long until NIRP comes to the United States.
So, here are the best investments for negative interest rates.