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>> No. 5905 Anonymous
30th October 2015
Friday 11:07 pm
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>Sweden is shaping up to be the first country to plunge its citizens into a fascinating — and terrifying — economic experiment: negative interest rates in a cashless society.

>The Swedish central bank held its benchmark interest rate at -0.35% today, the level it has been at since July.

>We reported at the weekend how central bankers and investment bank analysts are increasingly discussing when this might happen. And yesterday, Italy sold a two-year bond at an interest rate of -0.023%, which means investors have to pay to lend Italy money rather than receive interest on their loans. (Why would you buy such a bond? Well, if you believe that you’ll get even worse terms in the future from other creditors — hello, Sweden! — then suddenly -0.023% starts to look pretty good.)


http://business.financialpost.com/business-insider/people-in-sweden-are-hiding-cash-in-their-microwaves-because-of-a-fascinating-and-terrifying-economic-experiment

I don't understand lads. Fair enough, forcing your customers to pay for an account at a bank, but why would anyone buy a negative interest rate bond? I don't understand what is going on.
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>> No. 5906 Anonymous
30th October 2015
Friday 11:13 pm
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Where can I take out one of these loans? I don't own property, and only a few shares, I want some more wealth distribution please!
>> No. 5907 Anonymous
30th October 2015
Friday 11:20 pm
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Is it a bet that the currency you've got is going to fall against the currency the bond is in, over the term?
Fucked if I know, I'm far from sober.
>> No. 5908 Anonymous
31st October 2015
Saturday 12:03 am
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>>5906
>>5907
Lads... Explain yourselves please.
>> No. 5923 Anonymous
2nd November 2015
Monday 3:08 am
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Buying a UK gilt already puts you at an effectively negative interest rate when you factor in inflation. Some people are so risk averse that they will pay a country to take their money in the hope that it will be more likely to exist in 50 years time than the bank down the road. Anyway, there is a lot of bullshit about the "efficient frontier" and how a portfolio must contain some combination of stocks and "risk-free assets" (government bonds) to maximise the risk:return ratio of the portfolio.

Anyway, this measure is more to do with stimulating bank lending (as all the bank has to do is now exceed at -0.35% return on investment to make money) than getting people to spend their bank-held money. The cashless stuff is important though as it puts customers in a hostage situation, where the bank could decide to start charging for all money transfer services if you cannot get out cash.
>> No. 5925 Anonymous
2nd November 2015
Monday 6:24 am
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>>5923
>there is a lot of bullshit about the "efficient frontier" and how a portfolio must contain some combination of stocks and "risk-free assets" (government bonds) to maximise the risk:return ratio of the portfolio.

Diversification through investing in a range of asset classes and geographical regions to try and minimise risk and volatility is one of the very basics investing.
>> No. 5935 Anonymous
2nd November 2015
Monday 1:57 pm
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>>5925

I am aware of that. I was trying to imply that it would not be of interest to him as a reason, not that it was not important.

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