01/22/20 factlet; negative interest rates

17 trillion dollars are invested at negative interest rates today. Surely, much of that is smart money. Why would anyone pay a bank to save money instead of receiving interest?

In 1935, Gerald Loeb stated: “Indeed, should some super-solvent agency agree to preserve the buying power of capital for a substantial length of time at a stated fee per annum, informed people would embrace the plan enthusiastically.”

Savers in Venezuela, Ecuador, Argentina, Iran, Turkey — the list is long, are much better off paying a small fee, a negative interest rate, to protect savings from hyperinflation.

It is not an indicator of problems in the rest of the world.

Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me

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