China, Europe, Evelyn discussed on All Things Considered

Automatic TRANSCRIPT

This is market place I'm calm I raised all one of if not the big threat that your policies to the American economy of such trade is what's going on in the rest of the world slower growth in China for sure but also Japan and Germany lots of places in Europe actually so central banks elsewhere have been cutting interest rates cutting so much that rates are actually negative so Evelyn orally from part of California one is no whether interest rates might go negative here as well marketplace Justin how has out the idea that you have to pay a bank money for the privilege of depositing your money there honestly sounds insane interest rate that the concept is really something that makes your head spin that's Torsten SLOC chief economist at Deutsche Bank he has a quarter of government and corporate bonds around the world have negative rates him if you do is an economics professor at the university of Oregon yeah yes you would get consumers of parking their money at the bank would have to park their money into other after that central banks use negative rates when there's a recession or when their economies are just weak Japan and Europe come to mind but here in the U. S. the economy is fine says Greg McBride at Bankrate the US economy is definitely the best house in that neighborhood the bride says interest rates are still pretty low though and every session hits and the fan has to cut rates further that only has so much room they can maneuver with interest rates before they get down to zero still he says interest rates would have to go far below zero the start affecting regular savers even in Europe it's mostly big institutional investors paying to deposit money but Horsens lock says if rates keep falling below zero people might withdraw their money from the banks and why wouldn't you why should I have my money in the bank with you when I can put it all out and put it in cash so keeping your money under a mattress isn't.

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