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Strategies & Market Trends : John Pitera's Market Laboratory

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Davy Crockett
John Pitera
roguedolphin
sixty2nds
To: John Pitera who wrote (18093)4/5/2016 2:18:15 PM
From: Hawkmoon4 Recommendations  Read Replies (1) of 33421
 
Here's a point I've been thinking about..

If I were actually paid to take out debt, say $1 million, at a negative interest rate, why would I want to invest in anything? Wouldn't I just prefer to hold the cash, rather than assume addition risk of not being able to pay it back by speculating in some other investment?

Just hold the cash, and if rates go even more negative, couldn't I pay back my existing loan, and then take out another at the new negative rate?

NIRP is going to screw up the entire financial system, IMO..

Hawk
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