by Chris Ciovacco
Financial Sense
Negative Interest Rates Unpopular
With the European Central Bank (ECB) getting ready to take center stage Thursday, the concept of negative interest rates has many investors scratching their heads from an economic benefit perspective. From The Wall Street Journal:
Banks and insurers don’t like it, borrowers are seeing little or no benefit from it and savers and pensioners fear their money is being eaten away by it: The policy of negative interest rates is as unpopular as it is mysterious. The European Central Bank looks likely to cut rates further into negative territory this week and yet no-one really knows exactly how it is supposed to help.
In this article, we will explore the following question: