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Something Crazy Is Going On In Swedish Money Markets
It appears Swedish banks are falling over themselves to get rid of excess cash. We noted Swedish banks refusing to open bank accounts in September, and warned in October of a "giant wave of money" heading into Sweden thanks to the Riksbank-ECB policy divergence, and now, Swedish banks are paying each other to take cash off their balance sheets into year-end, as 1-week STIBOR crashes to -1.792%.
In other words, "reverse window-dressing" as no one wants to show a negative carry asset on their balance sheet.
It is clear that SHB has the most "excess cash" to dump... willing to pay a massive 5.05% to someone to "take my money"
Or put another way...
It is these kind of nonsense disclocations that extreme monetary policy-makers create with their unintended consequences. As we previously concluded,
And so, we're now beginning to see the results of the beggar-thy-neighbor monetary insanity that grips DM central banks. It's a never-ending race to the bottom and now that everyone is moving further and further into NIRP, it's not even clear that there is a bottom. After all, even if negative rates finally do make their way to household deposits causing rational actors to simply withdraw their money, the monetary authorities can always just ban cash, which would effectively obliterate the idea of a "lower bound."
In any event, perhaps the more pressing concern here is the combination of a massive housing bubble, NIRP, and a QE program that's all but exhausted. As we noted last week when discussing Denmark, Copenhagen home prices are rising at 12% per year (or more) and yet the Danish central bank is operating on the assumption that headline inflation is half of 1%. Obviously that borders on the insane. Central banks are deliberately ignoring a sure sign of inflation on the way to citing disinflation as an excuse for doubling, tripling, and quadrupling down on the same policies that have driven housing prices into the stratosphere. The question then becomes this: when these housing bubbles burst (and they will), how do central banks in Denmark, Sweden, and Norway intend to fight the ensuing deep recessions now that they've exhausted their counter-cyclical capacity?
h/t @fksthlm
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what did you expect from a muslim cuntry?
cash is the new hot potatoe. I only wish it would land in my bank account
"But you promised you'd kill me last!"
If it landed in my account, I'd trade it in on capital goods and inventory as fast as I could manage. Let someone else hold the bag.
If it did you'd have trouble getting it out.
Accounts will be balanced one way or another.
stockpiling fiat, and assuming it all is equivalent to real wealth....is like stockpiling IOUs from your nephew with a 10 year meth addiction. At some point, fiat gets written off.
https://www.youtube.com/watch?v=7GSXbgfKFWg
Zero is the perfect balance point......
Is that positive 5% or is it the result of dividing two negatives? Aren't the swishies on NIRP? How could there be a positive 5.5% interest?
Good ! In Islamic Law only Gold and Silver is real money !
And interest on money is banned !
I wish the could become the Swedistand fast then :)
The Wallenbergs are up to something, probably NOT a good thing.
They can call me. If they are willing to pay -1.8% to hold on to their cash I will take as much as they can hand me. I'm cool like that.
Funny things happen when you fuck with the time value of money. Not "ha ha" funny. More like "oh, shit" funny.
' What do you mean I'm Funny?, Whats funny about it ? I'm funny like a Clown ? I amuse you ? What the Fuck is so funny about Me ! ? '
Joe Pesci
You know what, you're a funny guy.
The one time Joe Pesci wasn't a clown. He was great in that movie, which was great. Scary psychopathic guy.
But, they're getting ready to get rid of cash. No savings for anyone. And encourage everyone to borrow more. It's a can't lose, housing prices going up and mortgage rates are nothing or even negative. It's too good to be true.
Me, I'm gonna keep being opposite guy, little house debt here, cash, guns, pms, stockpiled food. More of the same from me while I watch everyone get temporarily rich. I bet it doesn't end well. I'd bet there's a plan to sucker a bunch of people.
Soon to be called Mecca of the North.
Libtards seem to want to destroy themselves all in the name of tolerance.
Libtards are just useful idiots furthering anothers' agenda, most will have a 'what have I done moment'.
Bring on the suicide booths.
https://www.youtube.com/watch?v=4-vRpQ0YyYo
I don't know why but this seems pertinent to the discussion.
http://youtu.be/BEenRyJIQWU
hey swede banks, pay me $1 mill and ill take $1 bill off your hands for you . now thats customer service
It won't be worth anything when they ban cash.
Good wallpaper maybe.
Or toilet paper?
And they are currently the most "cashless" country on Earth. Coincidence?
Discuss.
There are no coincidences. There are no accidents. Everything does indeed happen from a prior, mostly unseen reason.
The universe runs on very logical, repeatable principals.
And the jews want to eliminate the whites from the planet and make the rest of the races their slaves.
Unbacked cash is even shittier than the cheap thin toilet paper in public bathrooms. The absolute shittiest of toilet papers.
Everything's normal. Don't look behind the curtain!
Would you like knäckebrot with that?
Time is money. Not any more.
when banks make loans then sell them to infestors, mortgage agencies, etc., deposits are nothing but a liability. the new eCONoME.
Somethingh, sounds like an Indian name.
BOHICA? :)
Can anybody explain why banks are doing that ?
Are they forced by ECB to pay tax on idling parked at ECB money ? Why can not they keep that money elsewhere (do they have to prove to ECB they have enough reserves that is why) ?
Or is this all simply an attempt to help the defaulting borrowers not to default (which would force the banks to write-off bad debts)?
Living will soon be replaced by existing, and complying.
I know a Nigerian prince that can help the banks shed excess cash.
Are we sure this isn't a Wadell & Reed moment, well before it becomes an Indian in their parents basement moment?
http://www.riksbank.se/en/Interest-and-exchange-rates/search-interest-rates-exchange-rates/?g5-SEDP1WSTIBOR=on&from=2015-11-22&to=2015-12-22&f=Day&cAverage=Average&s=Comma
Sounds good to me. Purchase a home with a 100% mortgage at -1 or 2% making said mortgage self extinguishing. Remortgage each year to extract 10-12% of house value. Housing rises exponentially cause it becoms an ever increasing money maker. Quit job to allow new ME slaves to do the physical work. Enjoy life and become a trillionaire.
Helicopter money for the masses.
So easy. I'm gonna get that worm dangling around in my pond. Not worried at all about that shiny thing behind it. Similar thing happened late 70s to farm buyers. Prices goiing up 10% annually, use your new equity to buy another farm. Ooops when the prices sgarted dropping. Said equity now neg.
Cheap Money to Boost U.K. House Prices 6% in 2016, RICS Predicts http://www.bloomberg.com/news/articles/2015-12-22/cheap-money-to-boost-u-k-house-prices-6-in-2016-rics-predicts
Err.. Swedish has banks?? I taught they only have Inga the porn star??
Norwegian women are way hotter than Swedish women, so this news goes under irrelevant.
Most Swedish women will have hairy backs and be wearing tents in 10y.
Swedish women (and men for that matter) have absolutely no dress sense. Green and yellow stripey top with red tartan trousers, they think they look sexy as hell.
Scandinavian gals are fucking hot but the worst wife that can have since they are all raised as man hating feminist bitch... The worst wife material that exist !
Phut
I'm a newbie (and I respect that status):
this is my first post; I lie awaiting . . .. [advice, MF's . . . , but where?].
And, phorgive me for using EuSSR as a 'term' but I think that we might just get used to the concept, given its modus operandi.
Use EuSSR more often in your communications, because that's just what its is. An EuSSR. NO MF'g-ing joking.
OK - so here we go (apart from the fact that I've got the hots for MicroBio after a 6-pack [beer that is]):
Phuk the SKR, Sweden and all of the mujahedin therein (sexy as hell, huh?). . .
and the women, geez, unfortunately (but good for breeding), they're only VIKING (the 'breed' that created bothcRussia and England, as we now know them, as nations) stock for Xriss'sake;
hand-made woolen sails (=top-notch techno at the time, using specially bred sheep) and so on; the Vikings did 'discover' Greenland, so, OK, I give up, phukked a'redy). Shaddup. Seen better (women) elsewhere in the EuSSR (e.g. Slovenia).
Writing up (regional) women reviews seems to be a [subliminal] big deal on ZH. Not that I've got anything against the concept (of sha**ing women), but for phuck's sake, keep it clean, huh? Why not provide real GPS (for contacts), huh? That would make it kinda easier? :-). Having said that, Hamburg's Reeperbahn is mmm . . . . hmmm.
This is NOT an advertorial: ZH - please DO continue to give me the TRUE beans on pecuniary ('Gold', baby) matters (I've been a reader for the past 4 years, but also feel that I might be able to contribute sensible stuff?)
Phuk mentors. I know what I think. If you don't like what I think, well, you can just phuk off.
PhutU2. OK, so how am I doing, fight club?
(Note for uneducutad MFs: EU does NOT = Eu(rope); the geographic centre of Europe for the uninitiated is in (somewhere +- in Lithuania) yeah, that's right - Europe's East border is at the Urals, not just east of Bulgaria! Shucks, that means that Putin's Russia is actually IN Europe; RIGHT! Get real! Unfortumately, the stuff aft of (=East) of the Urals already (in reality) belongs to the Chinese))
I hope I've not pissed off too many ZH-ers with this virgin entry. If you see EuSSR used on ZH , it's probably me.
If I have, phuku2!
(sorry about bringing in this txt-type-sh**e nto ZH, but after 2 six-packs, it was the only op[tion . . . )
OK, I know it's too long (for a virgin speech), but, will be reading y'all anywayze!. Phuk the EuSSR.
WTPh?
Eussr,, I get ,, lots of the other stuff escapes me