Comments on: Sweden: negative interest rates and quantitative easing http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html a finance news and opinion site Mon, 22 Mar 2010 08:58:45 +0000 hourly 1 By: The True Cost of 0.25% - Gold Speculatorhttp://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-5837 The True Cost of 0.25% - Gold Speculator Fri, 17 Jul 2009 15:42:05 +0000 http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-5837 [...] incentive to borrow is huge," notes former diplomat and M&A specialist Edward Harrison at the CreditWriteDowns blog. "So, is the Swedish announcement qualitatively different?On some level, it is not." Which is [...] [...] incentive to borrow is huge," notes former diplomat and M&A specialist Edward Harrison at the CreditWriteDowns blog. "So, is the Swedish announcement qualitatively different?On some level, it is not." Which is [...]

]]> By: WikiGold – Commentary » Blog Archive » The True Cost of 0.25%http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-5810 WikiGold – Commentary » Blog Archive » The True Cost of 0.25% Sat, 11 Jul 2009 00:51:23 +0000 http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-5810 [...] to borrow is huge,” notes former diplomat and M&A specialist Edward Harrison at the CreditWriteDowns [...] [...] to borrow is huge,” notes former diplomat and M&A specialist Edward Harrison at the CreditWriteDowns [...]

]]> By: Edward Harrisonhttp://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-8368 Edward Harrison Mon, 06 Jul 2009 12:29:26 +0000 http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-8368 It means employment measures. In German, it would be called Arbeitsbeschaffungsmassnahmen. That's a mouthful.<br><br>It's a bit like Roosevelt's works measures to employee people laid off in 'something.' It means employment measures. In German, it would be called Arbeitsbeschaffungsmassnahmen. That's a mouthful.

It's a bit like Roosevelt's works measures to employee people laid off in 'something.'

]]> By: Edward Harrisonhttp://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-5765 Edward Harrison Mon, 06 Jul 2009 06:29:26 +0000 http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-5765 It means employment measures. In German, it would be called Arbeitsbeschaffungsmassnahmen. That's a mouthful.<br><br>It's a bit like Roosevelt's works measures to employee people laid off in 'something.' It means employment measures. In German, it would be called Arbeitsbeschaffungsmassnahmen. That's a mouthful.

It's a bit like Roosevelt's works measures to employee people laid off in 'something.'

]]> By: Aki_Izayoihttp://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-5761 Aki_Izayoi Mon, 06 Jul 2009 00:25:34 +0000 http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-5761 I like Sweden's other programs such as "AMS-åtgärder" Since Edward knows Swedish, could he explain what is "AMS-åtgärder?" I like Sweden's other programs such as “AMS-åtgärder” Since Edward knows Swedish, could he explain what is “AMS-åtgärder?”

]]> By: Edward Harrisonhttp://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-5758 Edward Harrison Sun, 05 Jul 2009 14:11:44 +0000 http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-5758 Stevie, thanks or catching 'borrowers' when I meant 'savers.' My understanding is the negative rate isn't really an interest rate banks receive bu rather one they must pay for depositing money t the Riksbank. That incents them to not have excess reserves on deposit.<br><br>As for the repo rate at 0.25%, we will see more spread for banks as a result. The rates won't be passed through 100%. It's a fat spread way of re-capitalising. Stevie, thanks or catching 'borrowers' when I meant 'savers.' My understanding is the negative rate isn't really an interest rate banks receive bu rather one they must pay for depositing money t the Riksbank. That incents them to not have excess reserves on deposit.

As for the repo rate at 0.25%, we will see more spread for banks as a result. The rates won't be passed through 100%. It's a fat spread way of re-capitalising.

]]> By: Stevie b.http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-5757 Stevie b. Sun, 05 Jul 2009 12:00:58 +0000 http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-5757 Ed - a) "Punishing borrowers by lowering interest rates to zero and printing money is not going to solve the problem ." I may be misunderstanding (again), but do you mean punishing "savers" as opposed to borrowers?<br><br>b) "we will start penalizing banks for not lending by charging them 0.25% for holding deposits at the Riksbank." The fog lifts - I got it into my head that the banks were going to charge their (retail) customers for the temerity of having a deposit with them. Is this what will naturally follow if the negative rate charged by the CB rises? Ed – a) “Punishing borrowers by lowering interest rates to zero and printing money is not going to solve the problem .” I may be misunderstanding (again), but do you mean punishing “savers” as opposed to borrowers?

b) “we will start penalizing banks for not lending by charging them 0.25% for holding deposits at the Riksbank.” The fog lifts – I got it into my head that the banks were going to charge their (retail) customers for the temerity of having a deposit with them. Is this what will naturally follow if the negative rate charged by the CB rises?

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