This page has been archived and commenting is disabled.
Meanwhile, In Sweden, Banks Are Refusing To Open Savings Accounts
Early in July, Sweden’s Riksbank proved its dedication to the post-crisis central bank mantra of “if it’s broken, break it some more” when, after becoming the first country to witness observable, indisputable evidence of QE’s failure, the central bank pushed rates further into negative territory and expanded QE.
The problem for Sweden, as we documented in “For The First Time Ever, QE Has Officially Failed”, is that QE had soaked up so much of the available high quality collateral that bond yields and the krona were moving in the wrong direction (i.e. higher) meaning that more QE would only exacerbate the situation, leading to still higher yields and a stronger currency. Incidentally, to avoid distorting the market even further, Morgan Stanley thinks the Riksbank may have to resort to mortgage bonds in the not-so-distant future.
Of course as we’ve seen, things can always get NIRP-er-er in the new paranormal which is why the market is pricing in a 50% chance of more easing from the Riksbank at tomorrow’s meeting.
The problem is that if you go NIRP and still are not able to achieve the kind of economic outcomes you were looking for by essentially forcing depositors to choose between a tax on their savings and pulling money out and spending it, well then the next logical thing to do is to stop accepting deposits, which is apparently what it’s come to in Sweden. Here’s more from Radio Sweeden:
Richard Landén from Helsingborg, southwest Sweden, tried to open a simple savings account at Swedbank. But the bank wanted him to move over his entire account, including his monthly salary deposits and any savings he had.
"You have to be an complete customer, they said. It's either that or nothing at all, apparently," Landén told Swedish Radio News.
Swedbank declined to comment on the case.
Sweden's central bank has cut its key interest rate, the repo rate, to -0.35 percent, meaning making a profit on savings alone has become nearly impossible. The central bank will announce its next interest rate decision on Thursday.
Exactly how many people have been denied opening a savings account is hard to say. But savings advisor Claes Hemberg at Avanza Bank thinks it's a new trend. Several customers have been in touch with him about it
"Yes, savers get in touch and ask: 'Can the bank refuse me?'" he said.
"I think it's pretty bad style. At the same time, I have been a customer there before five years ago and has been very well treated. In this case, it was quite the contrary. It was a strange attitude from the beginning, I think," says Landen.
According to Swedish law, barring any extenuating circumstances like suspected money laundering or large debts, banks are not allowed to deny anyone from opening an account.
But deny they apparently will, because "simple" (i.e. probably small) savings accounts are nothing but a cost center, money-losing hassle and because anyone looking to open such an account isn't likely to be an individual with vast economic resources (i.e. is likely to be middle income at best), and because those types of people have a far higher propensity to spend what's in their pocket (see chart below) shutting them out kills two birds with one humiliating denial stone by alleviating the bank of the aggravation of servicing their accounts and by refusing to allow people to save, thereby effectively forcing the issue in terms of M2 velocity.
So in other words Mr. Landén from Helsingborg, either give the bank enough of your business to matter or else go do your patriotic duty and spend whatever you had planned to save. The Riksbank will thank you for it.
»
- 141801 reads
- Printer-friendly version
- Send to friend
- advertisements -
"The poor guy is missing out on .01% interest. He'd be better off burying his savings in a high end coffee can."
Exactly right. He would.
It's not hard to see how people who lived in the 1930's really did start puting their money under the mattress, or a hidden can in the kitchen. There are NO banking fees when you save money this way.
We are moving into serious times again. It's obvious that a lot of these banks cannot survive. Nor should they.
Yup. When Greece started to limit people to a daily allowance of their own money, I started filling the safe with cash and the yellow stuff. Bank lady asked what I was doing with my money, even when withdrawing well below the 10K reporting limit. Hookers and blow, my dear. Hookers and blow.
Hold on, someones at the door.
Funny, but the interest rate for Swiss "young" savers is .75%
It's probably worth it to get 'em while they're young, and they probably make up the difference in fees and whatnot.
You think that is a rabbit hole!? I’ll show you a rabbit hole:
https://www.youtube.com/watch?v=3KSJY0c8QWw
Hey Sweden. Buy gold and silver and hide them in your sock drawer.
The only kind of business that can afford to turn away customers is phony funny business, aka government sponsored fiat business.
I thought Sweden was leading the charge to go cashless. What'll they do then?
http://www.dailymail.co.uk/news/article-2117643/Sweden-Country-cashless-...
Okay,
So they want us to get rid of our government currency, thinking it will expand 'aggregate demand'.
But they are ignoring the balance of payments. Just because money is being temporarily stored does not mean that it has not been spent...just that its spending event is in the future.
When they deny people's time preference and demand outcomes that are not beneficial to individuals they are likely to get a result they don't intend.
The result of mass capitulation to their desired trade would result in everyone avoiding the tax, and spending all their government currency at once...which is also called 'hyperinflation' because it bids up the prices of everything while bidding down the value of the currency.
Is that really what the banks want?
Maybe.
They would probably get enough in the ensuing conflagaration to cover the loss of their entire loan book...thus allowing them to restart the whole scam.
If they, on the other hand, opted for the natural alternative - mass deflation - then they go bankrupt and become paupers.
Oh for the day when banks are a utility rather than the epicenter of modern monetary life.
the utility operator doesnt care about his costs, he always has the same profit margin mandated by the government. its the business model of the future.
Not true. Not true at all. Of course an entity with a more or less fixed income controls costs. How else can they build reserves for upgrades and inevitable lawsuits? I have a relative in the industry whos focus is on controling costs.
Easy to make interest on BTC deposits, and you can't get turned down
The whole problem with QE is that no bankster was jailed for lyin' and stealin'.
They're still lyin' and stealin' and livin' large. And we wonder why QE never worked.
QE worked perfectly for those it was intended to help.
There are no savings accounts in a cashless society.
The liquid asset is going extinct.
My Mom always had this book laying around when I was a kid, When Your Money Fails (1981).
Pretty crazy 666 end times stuff(no man can buy and sell without "the mark"), but damn if it wasn't spot on regarding money, chip based currencies and such.
We also didn't buy Procter and Gamble products, because Satan.
The nice Jewish folk convinced the X-ian folk they re to walk into the guillotines.
Full time positions as Guillotine operator. OT and bennies lopping heads.
Don't forget the yappies.
Hold on, buddy. Careful how you talk about God's Chosen People, or 144,000 of them. And I think the Christians ARE the guillotine. Have you seen what we are capable of? American Christians will just fuck you up , for nothing, or your ideas, or cool shit, whatever... We are armed to the teeth, bloodthirsty, and Fucking Super Righteous for America, Jesus Country.
American pansies about to get raped.
Come on now...
World Military Balance 2015 (for 2014)
Spending(b), GDP
1 United States 581.0 3.3 2 China 129.4 1.2(Prospect, USA) 3 Saudi Arabia 80.8 10.7(Prospect, USA) 4 Russia 70.0 3.7(Prospect, USA) 5 United Kingdom 61.8 2.1(USA) 6 France 53.1 1.8(USA) 7 Japan 47.7 1.0(USA) 8 India 45.2 2.2(USA) 9 Germany 43.9 1.1(USA) 10 South Korea 34.4 2.4(USA)Seriously, what world do you live on, one where America isn't the greatest global superpower, and hasn't been for 100 years? China, our 'big fear', can't keep down the explosions and everyone will be dead of asphyxia in 10 years. Russia is just playing along with is. The new cold war is a little joke, we want to be friends. Russia is a big body with a small brain that needs us to walk it to school. USA, dude. Don't you watch the movies or TV?
buy more stawks
Dig this, for example... American Christians convinced the Pope to forgive and forget, regarding infant sacrifice to Adrammelech. Christians are flooding the godless heathens in Europe with, godless heathens. Christians are flooding America with inexpensive Catholics from OUR Southern nations. Christians are behind every event that worries us, in these end times, but with purpose. There is a master plan, and you can see the pieces falling into place. I'm not a Christian myself, but I shoot hoops with a lot of Christians, and let me tell you, they have a master plan, and they will win in the end, at any cost.
I'm reminded of a song:
https://www.youtube.com/watch?v=9d4ui9q7eDM
when are we gonna get tired of talking? Talking is a gambit to buy time and keep bullshittin' you and conning you. It is but more offense. Don't respond, start swinging.
People live to be policed.
Look at the support these three Lib, unionist cops are getting.
Umm hmm. Yup. Par for the course, I ain't shocked, I'm at the Hot Gates, oiling up and brushing my tresses. Getting tired of waiting for you pussies.
I've been a credit union member for more than 25 years, they let me open a savings account with $5 and keep that parked there as long as I want.
Yup. As I've commented before on ZH, neighbourhood credit unions are the ticket. I firmly believe that they will become much more widely used in the very near future, maybe even taking in the lions's share of public savings. Seriously, fuck the giant banks right back into the middle ages. Nobody needs them. At least the common folk who the banks are setting up for robbery sure don't need them. Besides, the local credit union is more like a situation where neighbors lend to neighbors... and shit gets done.
Credit Unions are the best. Dumped Bank America 6 years ago.
Don't lie Tyler's.. you just needed a reason to put that SAME picture of the Swedish hotty..
-That's all Folks-
banks have been doing that in the usa for years in the form of fees that would make it stupid to open a savings account for a coupla bucks(up to 500 dollars minimum continuous balance).
the only qe that works are direct cash liquid deposits to every consumer with an official id number. once they figure that out they will do it. all their dreams will come true, a huge burst of economic activity without any need to raise wages or prices and maybe enough inflation to raise rates for good reasons and a return plain old market manipulation instead of extreme(-ly criminal) manipulation of the markets.
But... But... Bernie says everything in Sweden's going great!
Are we supposed to adopt them? Where do I send the $24.00 a month for my Swiss Miss?
Svenska Handelsbanken AB,Svenska Handelsbanken AB,,,
Ticker,SHBA SS Equity,,,
Includes Loans to:,Svenska Handelsbanken AB,,,
Identified in Fed Documents as:,Handelsbanken,,,
Capital Raised From Home Governments,,,,
Programs,CPFF,,,
Country,Sweden,,,
Industry,Banking,,,
"Average Daily Balance
From 8/1/2007 to 4/30/2010",$535.58 ,,,
Peak Amount of Debt,"$5,663.10 ",,,
Peak Date,12/2/2008,,,
Number of Days In Debt to the Fed,213,Market Cap,Percent of Market Cap,CPFF
-
Nordea Bank AB,Nordea Bank AB*,,,,
Ticker,NDA SS Equity,,,,
Includes Loans to:,Nordea Bank Finland PLC/New York and Nordea Bank Finland PLC/New York,,,,
Identified in Fed Documents as:,NORDEA BK FINLAND PLC NY BR and NORDEA BK FINLAND PLC NY BR,,,,
Capital Raised From Home Governments,,,,,
Programs,"TAF, DW",,,,
Country,Sweden,,,,
Industry,Banking,,,,
"Average Daily Balance
From 8/1/2007 to 4/30/2010",$1.44 ,,,,
Peak Amount of Debt,$50.00 ,,,,
Peak Date,12/20/2007,,,,
Number of Days In Debt to the Fed,30,Market Cap,Percent of Market Cap,TAF,DW
-
Skandinaviska Enskilda Banken AB,Skandinaviska Enskilda Banken AB,,,
Ticker,SEBA SS Equity,,,
Includes Loans to:,Skandinaviska Enskilda Banken AB/New York NY,,,
Identified in Fed Documents as:,SKANDINAVISKA ENSKILDA NY BR,,,
Capital Raised From Home Governments,,,,
Programs,TAF,,,
Country,Sweden,,,
Industry,Banking,,,
"Average Daily Balance
From 8/1/2007 to 4/30/2010",$255.59 ,,,
Peak Amount of Debt,"$1,350.00 ",,,
Peak Date,3/13/2008,,,
Number of Days In Debt to the Fed,315,Market Cap,Percent of Market Cap,TAF
-
Funny, Humanitarianism and Liberal Socialism is the Rule and the Meme in Europe and Scandinavia.
1. They would pay interest to people on savings, yet they make money on Banking Privileges = They don't serve the people
2. They support Foreign Wars in many Liberal Socialist Countries, yet seem not to care about the Human Cost of Exporting War = They don't serve the people
3. Greece has no power to help itself, yet the Troika hold it to strong rules, contracts, while acting like a Patriarch, yet don't help with Greek humanitarian Crisis = They don't serve the People
4. Immigrants have been coming for years, dying in boats and trucks, very predictably seeking refuge since 2003... 2003 in the Iraqi War, yet the Troika doesn't nothing to plan to stabilize the Middle East = They don't serve the people
-
The Bank of Sweden Tercentenary Foundation (Swedish: Stiftelsen Riksbankens Jubileumsfond) is a Swedish foundation which awards grants to individuals and research groups for research projects in science, the humanities, social sciences, medical research, technology, and law. It was created to celebrate the Bank of Sweden's 300th anniversary in 1968.[1] The Riksbankens Jubileumsfond initiated the Cultural Policy Research Award in collaboration with the European Cultural Foundation in 2003. It is a member of the Network of European Foundations for Innovative Cooperation (NEF).[2]
Moron Swedes. Who gives a fuck about them? They are human garbage. The worst white people other than the English.
Did you know the 'silent majority' in Britain is mostly gay or bi-sexual now-a-days?
Half of young Brits say they are 'not exclusively heterosexual' with a quarter of all UK adults saying they are gay or bisexuahttp://www.dailymail.co.uk/news/article-3201071/Half-young-Brits-say-not...
what makes that interesting is it exposes the lie that gay people are born that way. mind you, i don't really care what people do for love or sex. so, i agree with this as the logical outcome of the removal of a taboo (old social media) that prevented, mostly men, from exploring the entire sexual realm as just the sex it is rather than some taboo, no, no thing because other people said so. i saw this in, of all likely places for people who were there at the time, ft. lauderdale in the later 70s and pre 1985. i can only imagine what the scene is like today after almost 40 years of evolution now that everyone treats sex as just all it is.....and love still makes it special(in the beginning. lol).
and that is the way of the world. fucking brilliant, isn't it?
Yet another reason why the English are the worst white people on the planet. Among the many, many other reasons.
I hope you get raped by a thick willy you POS!
thats great for me...less competition
That should go over well with the immigrant population that is taking over england that has the most popular child name of moe ham head.
The religion of peace. ;-)
Well if it was in the Daily Mail it must be true.
I think you have an anger problem...
I'd let her open my savings account...whatever that's supposed to mean.
Not surprise Sanders like Nordics ;).
Even that is nothing though, in Switzerland friend of mine told me his sister went to bank with 500000CHF(yep thats half million) to invest in something and they refused her because... it was not enough money to bother ;).
Swedbank is gobbling up small local banks and is rabidly anti-cash - all their branches are cash free with just a few regional branches having 1 lobby machines that accept cash deposits.It is normal for small shops in Sweden other than supermarkets to be card only no cash,Sweden is further along than anywhere else in EU when it comes to businesses that refuse to accept cash - even weekend flea markets most sellers accept mobile-pay -take a trip there with a good card dont bother bringing cash and use Swedbank if you wish to support the big fish that eats up competititon!
'
'
'
At some point, the unwashed will tire of paying people for the priviledge of keeping their cash and will start taking it out, literally stuffing it… into their mattresses.
Wonder where that expression came from, eh?
•?•
V-V
I'm proposing a new rule at ZH. All thumbnails should appear full size inside the actual article. Make it so.
Well, why not just BAN saving in banks? Let's ramp fractional reserve up - ONLY reserve in the bank is some fiat some from the central bank. Than the bank proceeds to issue credit up to some limit (maybe 50 times the initial central bank "deposit"?).
If you want to save - you go straight to the stock market and "invest it" or put the money in a hidden can.
Credit cards will still be allowed but no positive balances on any prol account, you have to spend the entire paycheck in say 3 months, or the surplus is just outright confiscated. After banning cash which will be done in a few years it's perpetual buying on credit. Prols keep spending money they don't have and than working like slaves to have enough of a paycheck to meet all of those credit payments in time. But who cares? Just go and get this thing that you want ... NOW!
nobody drowning is asking for a glass of water. such are the bankers with 0% and negative interest rates. all and any depositer of middle and lower class is is a pain in the ass. and they have to pay people to take care of them? overall a losing game.
NIRP, NIRPER, NIRPEST!!!