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negative rates again?! Germany.

German 10-year bunt. -.074%.
Totally nuts. Does this have anything to do with the utter hot mess called "Brexit?" Sure, pay the government to hold your money. Ridiculous.

Comments

  • Of course it's ridiculous. But if a business needs to hold large amounts of cash, just about the only way to get the equivalent of FDIC coverage is to buy a government bond, and pay 0.074% for the guaranteed coverage.
  • They don't have a similar bank guarantee, as with our FDIC?
  • I'm not certain of the details, but I seem to recall that their bank guarantee system is not nearly as robust as ours. In any case, I was referring to large businesses, whose coverage needs would likely exceed any guarantee either here or there.
  • E.U. banks, deposit guarantee scheme

    If E.U. bank fails created massive financial problems with personal monies accounts; one may be assured that the E.C.B. would print whatever it takes.....
  • Ah, yes. I recall now, about the Irish banks, Portuguese, Spanish, Greek...
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