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Nargis
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10 Feb 2016 10:32 #291143
by ketchim
LoL !
My advice to Cappo , Googs, Chairman et al :
remove your money from "small banks" and keep under Mattress
Federal Treasury Bills are useless...
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10 Feb 2016 10:51 #291145
by ketchim
Couple months ago I thought our Bank of Canada :
would have set interest rates at ZERO % :-[
and government T bills , pay zero as well !
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Nargis
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10 Feb 2016 11:17 #291156
by chairman
With negative rates, commercial banks would now have to pay the central bank to hold deposits with them.
Always tell someone how you feel because opportunities are lost in the blink of an eye but regret can last a lifetime.
cricketwindies.com/forum/
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Nargis
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10 Feb 2016 11:18 #291157
by Nargis
with "them" who?
so that means right now the commercial bank is not paying the central bank to hold money>
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10 Feb 2016 11:23 #291158
by chairman
normally the central banks charges a commercial bank a rate to borrow lets say 2%. now the commercial banks have to pay the central to hold their money ;D
Always tell someone how you feel because opportunities are lost in the blink of an eye but regret can last a lifetime.
cricketwindies.com/forum/
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10 Feb 2016 11:24 #291159
by chairman
By charging interest on bank deposits, the central bank is hoping banks will want to avoid paying interest and instead start lending out their excess funds again, and thus spur the economy back to full employment.
Always tell someone how you feel because opportunities are lost in the blink of an eye but regret can last a lifetime.
cricketwindies.com/forum/
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10 Feb 2016 11:30 #291160
by ketchim
Unfortunately that Lending will be at astronomical Interest rates
Cost of consumer borrowing will triple or quadruple .
IT is a stoopid Central Bank policy !
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10 Feb 2016 11:42 #291163
by ketchim
Instead of making Central bank ZERO %:
and forcing commercial banks to make Loans @ criminal % rates.
Why NOT just increase Federal interest rates ??
Too Simple ?
uh huh ! ::LOL::
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