Saturday, August 29, 2009

The Debts of the Spenders: Swedish Interest Rates Go Sub-Zero

Sigh. Japan III. (The USA is Japan II). And the UK is on the way to becoming Japan IV.

Central banks don't offer negative interest rates unless they are desperate to re-invigorate lending. Or in this case, forced lending since depositors ( in this case commercial banks that have deposits w/the central bank) are penalized for hoarding cash.

Deflation anyone?
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