Okay here's a finance question: I just saw an article where economists are panicking that we couldn't lower interest rates 5 points if there was a recession, as is I guess typical, because we're at 2% now. Why not? Why couldn't we lower rates to -3%?
-
-
Replying to @BootlegGirl
Cos then you'd be paying people to take out loans??
1 reply 1 retweet 1 like -
-
Replying to @BootlegGirl @its_so_soft
People would just not offer the loans at all then Unless you can make lending actually mandatory then you hit a floor at zero
1 reply 1 retweet 5 likes -
Replying to @arthur_affect @its_so_soft
I thought that the Fed rate is what banks borrow at from the Fed? So they could still mark up the loans to customers?
1 reply 1 retweet 0 likes
Replying to @BootlegGirl @its_so_soft
Right, people who talk about negative interest rates talk about doing it in a way where the interest rates for customers can still be positive
0 replies
1 retweet
4 likes
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.