Contemplating Negative Interest Rates
Let me get this right...you want me to loan you money AND you want me to pay you to borrow this money from me? Maybe I’m just projecting my own low abilities, but negative interest rates are mind-numbing to think about. Yet, more and more people are discussing the possibility of negative rates in the United States. In reality, none of us know how this would work, but here’s my best (non-exhaustive) introduction to the concept. As investors (and just citizens), we really want to focus on the possible problems that could arise from negative rates.