EPTSome german banks are negotiating about "punitive-interests" for "rich" people. Something about 0,25% if you have >500k at bank and >3m at total assets. It means if you have >500k you have to pay >1250€ to your bank yearly that your money is there lol. I am thinking about football stars like Müller, Robben (~9m€).
European Politico-economics QA Mega-thread - Page 436
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Dingodile
4139 Posts
Some german banks are negotiating about "punitive-interests" for "rich" people. Something about 0,25% if you have >500k at bank and >3m at total assets. It means if you have >500k you have to pay >1250€ to your bank yearly that your money is there lol. I am thinking about football stars like Müller, Robben (~9m€). | ||
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RvB
Netherlands6305 Posts
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Gorsameth
Netherlands22492 Posts
On March 11 2016 22:15 Dingodile wrote: So ECB interests rates affect to all EU countries or only EU members? Some german banks are negotiating about "punitive-interests" for "rich" people. Something about 0,25% if you have >500k at bank and >3m at total assets. It means if you have >500k you have to pay >1250€ to your bank yearly that your money is there lol. I am thinking about football stars like Müller, Robben (~9m€). What, a bank wants to tax its customers? what backwards world is this? | ||
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Dingodile
4139 Posts
On March 11 2016 22:23 Gorsameth wrote: What, a bank wants to tax its customers? what backwards world is this? ECB is taxing (called negative interests, around -0,35% now) its customers (all banks in EU), so some german banks want to do the same with its customers (people). | ||
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RvB
Netherlands6305 Posts
On March 11 2016 22:23 Gorsameth wrote: What, a bank wants to tax its customers? what backwards world is this? They don't want your savings. You can always use your liquid assets to buy other assets. The other side of the coin is that interest rates on loans etc. go lower again as well. Cannot have it both ways. | ||
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Acrofales
Spain18400 Posts
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cLutZ
United States19574 Posts
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WhiteDog
France8650 Posts
On March 12 2016 06:29 cLutZ wrote: If banks don't want deposits that means either A) there is no economic development so they can't use the money for loans; or B) the government created a system wherein its just as easy to take a loan from them. Also, the whole zone seems to be in stag(de)flation. It's the Japanese scenario all over again : an aging population, an independant central banks that prefer control of inflation rather than fighting unemployment, policies that research a lower labor cost and a desire to reduce deficit (leading to a decrease in gov spend per capita) all negatively impacting the agregate demand. The europe is doom to stagnate for another five to ten years, until there is another war maybe. | ||
zatic
Zurich15366 Posts
On March 12 2016 07:22 WhiteDog wrote: It's the Japanese scenario all over again : an aging population, an independant central banks that prefer control of inflation rather than fighting unemployment, policies that research a lower labor cost and a desire to reduce deficit (leading to a decrease in gov spend per capita) all negatively impacting the agregate demand. The europe is doom to stagnate for another five to ten years, until there is another war maybe. What would you suggest the ECB does? I mean, there really isn't anything left they can do to accelerate inflation, so that goes kind of against your point. | ||
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Dingodile
4139 Posts
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Gorsameth
Netherlands22492 Posts
On March 12 2016 20:53 Dingodile wrote: what happens if currency euro falls? All countries take predecessor currency? A life without currency for a (short) era? How does a currency die? No the Euro is not going to go away and no countries are not going to switch back. | ||
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corumjhaelen
France6884 Posts
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Dingodile
4139 Posts
On March 12 2016 21:01 Gorsameth wrote: How does a currency die? No the Euro is not going to go away and no countries are not going to switch back. I think currency dies if EU needs money and they dont get it. Look what happens lately. ECB at 0,00%. Banks have negative interests with ECB. Many countries reduce limit for daily pay out (in Germany you can take 5k cash daily, they want to reduce to 3k), some countries are thinking about remove cash und go for full electronic money. Tendency looks damn terrible. Do you remember about Zypern and their money? populations there weren't allowed to take own! cash from bank for few days somewhat like that because EU were afraid about their "money" (population's money). | ||
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Acrofales
Spain18400 Posts
The only way the Euro collapses is if people lose faith in it and the underlying economies (e.g. Venezuela). That isn't happening right now, nor is there any reason to assume it will. | ||
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maartendq
Belgium3115 Posts
On March 12 2016 22:56 Dingodile wrote: I think currency dies if EU needs money and they dont get it. Look what happens lately. ECB at 0,00%. Banks have negative interests with ECB. Many countries reduce limit for daily pay out (in Germany you can take 5k cash daily, they want to reduce to 3k), some countries are thinking about remove cash und go for full electronic money. Tendency looks damn terrible. Do you remember about Zypern and their money? populations there weren't allowed to take own! cash from bank for few days somewhat like that because EU were afraid about their "money" (population's money). That was mainly because banks never have enough money to be able to pay back everyone the full amount of money they have in their accounts. The banks would have gone bankrupt, which might suit some people's feeling for justice, but a lot of people would suddenly end up with nothing at all. Decisions such as these ("capital controls") are not taken lightly. Apart from that banks are often still private institutions. Putting money on bank or savings account means risk, although not nearly as big a risk as taking part in the shareholder casino, a.k.a. the stock market. | ||
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WhiteDog
France8650 Posts
On March 12 2016 19:54 zatic wrote: What would you suggest the ECB does? I mean, there really isn't anything left they can do to accelerate inflation, so that goes kind of against your point. Of course, the ECB can just monetize the deficit, publish currency to finance the state of all countries, financing infrastructure spending or the wage of government workers. This create demand (and, if the offer cannot keep up, inflation) instantly, and it is forbidden to the ECB exactly because of it. The ECB does not want inflation at this point, they want to preserve savings above all, even above the future of the euro zone. Most european countries were historically financing their deficit directly through monetization (printing the money directly by the central banks and then giving that money to the state, in the form of debt that never had to be paid), and not through debt on financial market (from private institutions or individuals). It is during the 70-80ies that most european countries changed this situation and made laws to force themselves to use the financial market for deficit financing. Some economists are talking about directly giving money from the ECB to european citizens, like you receive 500 € directly on your account, which is another way to finance the economy directly (and not through private institutions like the ECB is doing right now through quantitative easing). But, throughfully, I think financing infrastructures is vastly better. | ||
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Cam Connor
Canada786 Posts
After the announcement bunds rallied - too much so I sold bunds And then his press conference made bunds sell off hard and I netted a decent sum of money | ||
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Sbrubbles
Brazil5776 Posts
On March 14 2016 02:47 Cam Connor wrote: Draghi made me some nice money After the announcement bunds rallied - too much so I sold bunds And then his press conference made bunds sell off hard and I netted a decent sum of money Congrats I guess? | ||
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farvacola
United States18866 Posts
On March 14 2016 02:47 Cam Connor wrote: Draghi made me some nice money After the announcement bunds rallied - too much so I sold bunds And then his press conference made bunds sell off hard and I netted a decent sum of money Cam Connor, you marvelous man, you. | ||
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Cam Connor
Canada786 Posts
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