Скачать или смотреть Why Negative Interest Rates?

Why are people buying bonds with negative interest rates and what does this have to do with you? Something big might be up with the global economy and it's time to pay attention!

A negative interest rate means that a bond actually “yields or pays” a negative number. While it’s hard to imagine that it’s possible for an investor to invest money and not only not get any interest, but to actually lose money - that’s exactly what happens with negative interest rates. This may sound strange and indeed it is. There’s currently about 15 trillion dollars’ worth of bonds in the world with negative interest rates, mostly in Europe and Japan. If you bought a 10 year German bond today, it yields a negative zero point 5 percent, meaning that in 10 years you would get back 99 and a half cents on the dollar and no interest. This has never happened before in financial history.

What do negative interest rates tell us? They say that the economies of Europe and Japan are depressed and probably already in a recession. It also says that the central banks seem to have lost their ability to stimulate their economies out of weakness by lowering interest rates or providing massive amounts of cash - something they’ve always been able to do in the past. The last time the world experienced anything like this was the Great Depression of the 1930s, which took World War Two to turn around

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