No lender will ever make a loan for a negative interest rate. It is always a bad deal to loan $1 out and get 97 cents back, because you could have just held on to the $1. $1 is always more than 97 cents, no matter what happens to the price level, no matter how risky or safe the loan is. Negative rates are inherently unprofitable: A business cant offer these rates unless it is subsidized, and wont offer them unless its forced.
Posted on: Sun, 08 Jun 2014 03:00:30 +0000