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Old 02-10-2016, 01:05 PM
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Carol Marler
Join Date: Sep 2001
Location: Back home again in Indiana
Studying for Nothing actuarial.
Posts: 37,647

Originally Posted by whoanonstop View Post
Well, if negative interest rates are just a response to deflation, then negative interest rates themselves aren't necessarily "bad". On the other hand, a deflationary environment has always been thought of as "bad". I'm not fighting that it isn't, just wondering if you have a firm reason to believe so, or if it mostly comes from the media. Know what I'm saying?

A little bit of context for your first sentence. For those of us who rely on our investments, low interest rates are bad. Negative interest rates are very bad. Maybe not so much for the rest of the world, I will admit.

As for the rest, I guess I'm agnostic about it, but from what I've read about the 1930s, it seems that in that time frame, deflation was just one part of a very bad circumstance for a lot of people.
Carol Marler, "Just My Opinion"

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Last edited by JMO; 02-10-2016 at 01:09 PM..
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