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To: Woody_Nickels who wrote (12673)1/3/2013 4:06:50 PM
From: Jacob Snyder2 Recommendations  Respond to of 13403
 
OT <Are negative interest rates possible?>

In 2016, after QE7 fails to get us out of the recession which started in 2015, the Fed will announce the following stimulus measures for QE8:

1. all large banks will be required to borrow large amounts of money from the Fed at no interest

2. the banks will be charged 5%/year on cash they hold

3. thus forcing banks to lend money to everyone for anything. The banks won't need to hold any cash reserves, as the Fed will guarantee them against any losses.

4. to stop housing prices from any further declines, the fed will pay 5%/year to anyone who will borrow money for a mortgage. The Fed owns all mortgages in the U.S. by then.

5. if that doesn't get the unemployment rate below 10%, the Fed is considering QE9, open market purchases of stocks, at 40-80B$/month, until targets for the S&P500 are reached.