The Incorrigible Stupidity Of Negative Rates

But if central banks push interest rates below zero, this essential function of an economy doesn’t function anymore. Now risk cannot be priced anymore. The perfect example of this: Certain junk bonds in Europe are now trading with a negative yield. This shows that the risk-pricing system in Europe is kaput.

 

 

 

 

 

 

https://wolfstreet.com/2019/08/21/how-negative-interest-rates-screw-up-the-economy/