19 European Countries Now Have Negative Interest Rates

The Jackson Hole monetary conference had no sooner ended than one more European country was added to the scroll of countries with negative 2 year sovereign yields...

As Snake Hole Lounge details, the latest addition is the island of Cyprus whose Bank of Cyprus just posted a huge loss on bad debt provisions.

(Bloomberg) — Bank of Cyprus reported loss for the second quarter of EU556 million.

 

2Q total deposits EU16.58 billion
2Q Oper Profit EUR 130M
Projects 2018 EPS EUR 0.40
Sees 2018 Cet 1 >13.0%
Sees No Equity Divident for 2018
Sees Potential AT1 Issuance
CET1 Transitional Ratio at June 30 at 12.3%

I guess ECB’s Mario Draghi will keep the pedal to the metal!

ecbbalarate

I wonder if Queen’s Freddie Mercury foresaw Cyprus’ banking fiasco?

Here is the ECB’s Mario Draghi telling Cyprus that they have potential for a healthy banking system and positive 2 year sovereign yields.

you

Comments

Haus-Targaryen Wed, 08/30/2017 - 10:31 Permalink

What happens if you lose 1% of your nominal principal compounded over 30 years while adjusting upwards COLA payouts for pension beneficiaries?  Guess we'll be finding out in rainbowland sooner rather than later.  

7thGenMO GreatUncle Wed, 08/30/2017 - 13:22 Permalink

Agree on "desperation", but with the caveat that there is much more the globalist oligarchs will do to create a society of control with the fiat system - Euro, GBP, JPY, and USD collusion as recently described by Nomi Prins here on ZH.  Our Founding Fathers were largely composed of farmers who understood that natural law is paramount.  This is why they specified a PM based monetary system - one subject to natural law where only those contributing economically receive PM-based money in exchange for goods and services.  With fiat currencies, politicization of the fiat results in politically correct, but uneconomical goals being pursued - the large increases in MIC spending for instance.  It is no wonder that for the majority of the history of the Republic that military as well as other government expenditures were disciplined by the natural scarcity of a PM system. Now, politicization has taken place to such an extent that political lackey's, such as Antifa and the IRS's Lois Lerner, can be funded by those with access to the fiat.  The society of control is only beginning unless Western Europeans, including European Americans, unite around the concept of the sovereign nation state, such as Hungary is promoting.

In reply to by GreatUncle

Macavity 7thGenMO Wed, 08/30/2017 - 15:18 Permalink

I thought, perhaps incorrectly, that the founding fathers were duped onto gold and silver basis.  Pre-independence, gold and silver flowed out of USA to pay Britain, silver had a spotty history as it's supply was in constant increasing flux (whole new world to plunder), International banker scum controlled the gold.  Pre-independence currency / money was land-based, and was stable in times of peace and if managed well.  Gold is just a coincidence, a nice, shiny, scare, lovely coincidence--probably maintains its price because those that hoard it (big hoards a la Ft Knox or Germany) insist that it is valuable.  It has many useful qualities for money and currency, but is controlled by nutters.  I have yet to see or hear about a monetary or currency system that doesn't crack open for impure motives (i.e. very powerful thieves).  Gold would be perfect if it couldn't be manipulated.See https://criminalbankingmonopoly.wordpress.com/

In reply to by 7thGenMO

Macavity peddling-fiction Wed, 08/30/2017 - 16:53 Permalink

Almost the whole bloody system is fraud or theft.  It is plain as day, and would likely be fixed if those mechanisms weren't also the very same tools of hte game of empire, 20th/21st century style.  Capital markets, derivatives, commodities, FX, etc allow financial war.  Think about commodities:  why have governments allowed synthetic middle men to steal bazillions from commodities producers and consumers?  Because it is also a great tool to thrash a non-compliant country with limited sources of wealth, or cause a global/regional food shortage.Goddamned selfish arseholes.

In reply to by peddling-fiction

7thGenMO Macavity Wed, 08/30/2017 - 16:56 Permalink

Thanks for the link, and you make a great point about land-based currency as I know payments were sometimes settled in land in lieu of hard money.  However, I think my ancestors from the British Isles would have probably used hard coin of The Empire to acquire 600 acres of Thomas Jefferson's Louisiana Purchase to realize his objective of making America a continental nation of European-American land owners.

In reply to by Macavity

Macavity 7thGenMO Wed, 08/30/2017 - 17:05 Permalink

Land-based currency has its drawbacks and I'm not espousing it.  Land-based means unlanded are penniless.  Probably would also concentrate wealth (land) terribly immediately or eventually.  One of the worst effects of the debt-based current regime is that it facilitates monopolies (why don't I take out a loan from my banker friend to buy out my competitor?).  Back to land, given the current share/split of land, this would be dire straits from the outset (not Dire Straits "Money for Nothing", but rather economic hardship).

In reply to by 7thGenMO

7thGenMO Macavity Wed, 08/30/2017 - 17:59 Permalink

Agree that it does facilitate monopolies, especially empowering the globalist oligarchs that own the ultimate debt-money monopoly - The Fed.  My current thinking is that any money system should reflect a system of barter and therefore have intrinsic value vs. requiring a power of enforcement (government) as does our current system.  However, this would require a considerable reduction in the size of government programs that have no net economic benefit - politically difficult to say the least.  Hopefully, ZH is helping to educate the public to the abuses inherent in the current system, and an alternative will eventually be developed.

In reply to by Macavity

Five Star Haus-Targaryen Wed, 08/30/2017 - 10:40 Permalink

The Eurozone literally has not created a single net job since 2008.  The population has grown by 6 million. Think sbout that.Adjusted for inflation, Greece is the third slowest growing economy in the entire world since 2000. Italy 4th.. Portugal 6th. As in slower than Sudan which spilt into two countries in that time period,  iraq which has been at war for 14 of the 17 years, iran, Yemen etc...Virtually the only economy that did worse was Mugabe's Zimbabwe. Think about that for a second.http://thesoundingline.com/eurozone-still-fewer-people-employed-2008/

In reply to by Haus-Targaryen

LawsofPhysics Wed, 08/30/2017 - 10:42 Permalink

LOL!!!And so bankers and financiers in these countries continue to GIVE THEMSELVES ACCESS TO BILLIONS for free (technically they are PAYING THEMSELVES TO HAVE ACCESS TO "FREE MONEY")?!?!?! Trust me the average bussiness owner or productive citizen does NOT have access to money at NEGATIVE INTEREST RATES!!!!My god people, roll the motherfucking guillotines already!!! NOTHING changes otherwsie.

GreatUncle LawsofPhysics Wed, 08/30/2017 - 12:47 Permalink

Laws of Physics, their plan was so fucking stupendous, try this ...A few elites a long time ago set up an economic system that worked wonders for them making them appear so clever to justify all the wealth they were stealing. Into the script they wrote we must always have 1-2% more than everybody else always so the system they biased in their own favour.Think FED, CB's in general everywhere, so good at making sure they never lose and this is all this is. It is what thieves do and now roll the clock now, 1-2% more YOY on a long enough timeline they now have > 100% of the economy and their is no economy or anything to play for.We are there and from their own personal decisions of never losing and greed they actually wrote a new novel for themselves.The Soros / Rothschild new novel is"How we created an economic system to have my head cut off by a guillotine".So in all history now we know the criminals who created the system actually got themselves killed, the inevitable outcome.

In reply to by LawsofPhysics

Macavity GreatUncle Wed, 08/30/2017 - 16:59 Permalink

I just read Rogoff (because I had to).  What a slob.  Again and again, he asserts "the FED is 100% owned by the US government" and "monetary policy has no effect on the real economy."  You've nailed it.  I think most people suspect something fishy--it's hard not to when bankers haven't suffered at all for their 2008/9 sins.

In reply to by GreatUncle

Honey-Badger (not verified) Wed, 08/30/2017 - 10:33 Permalink

What a fucking joke....the only thing you can do is remove your labor (Money) from their paper fraud system and hope for the best.WHERE IS MY NEGATIVE INTEREST RATE MORTGAGE YOU ASSCLOWNS?

Just Another V… Wed, 08/30/2017 - 10:45 Permalink

   NO REASON to own GOLD  when you can put your $$$$$ in a bank that doesn't return it all .........  I will gladly keep your money..... if I do not need to return it all.    

rejected Wed, 08/30/2017 - 10:46 Permalink

They just keep ripping us off claiming to be trying to save the economy.Only the stupidest of the stupid would believe that.  I guess this is a good indicator for the average intelligence on the planet today.

ET (not verified) Wed, 08/30/2017 - 10:53 Permalink

The smart Europeans already have a stash of Gold and Silver in their homes and do not bother with banks that steal their purchasing power through bank note inflation (QE and fractional reserve lending).

Oreilly Wed, 08/30/2017 - 10:53 Permalink

So if borrowing money is cheaper than not borrowing money (i.e. - negative interest rate means you pay less than you borrowed to fulfill the loan), then where is the incentive for a government to not borrow as much as they possibly can, irregardless of whether they even need to borrow?

In the US talk is of how bad the budget will be when $20 trillion actually has realistic interest attached to it. But if the Treasury can just roll all those bonds over into negative interest rate bonds, then $20 trillion debt will turn in to a money making asset!

Hey, it all makes as much sense as the bone headed official reason for why countries are doing this ...

adr Wed, 08/30/2017 - 10:54 Permalink

Isn't it nice to know you are alive during one of the most fucked up periods in human history?Things haven't been this screwed up for millennia. Future generations will be taught about this period and how it ended the world as we knew it. If people will even be able to read in the future.We made a little pod that could go 200mph in a vacuum tube and called it the future of transportation, while we already have 200mph conventional bullet trains. We talk about going to Mars while our roads look like the surface of the moon. We've added trillions in debt to future generations but call it growth now.The insanity of this epoch is unfathomable.

JoeTurner Wed, 08/30/2017 - 10:58 Permalink

The baby boomers running this global economic shitshow are just hoping that it doesnt all blow up before they die. They dont care what they've done to their children and grandchildren.

East Indian Wed, 08/30/2017 - 11:10 Permalink

My friend in the US recently went to open an account for his college-going son. The bank told him the account does not carry any interest rate; instead $24 per year will be charged for the facilities. However, this is waived out for the 18 - 24 age group.  I dont know if this is because my friend and his son are not citizens. Negative rate has reached the USA too. edit: in India such cheque accounts carry a nominal 4% interest rate. 

Money_for_Nothing East Indian Wed, 08/30/2017 - 11:36 Permalink

Banks charge fees like this. A Credit Union usually doesn't charge such fees. Credit Unions don't pay out interest either (or not enough to matter). Credit Unions do offer a fraud-protection-insurance that is effectively a fee. But you can opt-out after you find out about it.

No money to be made in lending money right now. As noted on ZH officially-sanctioned-fraud is rampant. Banks want pay-day-loan-lenders run out of business because such lenders charge less interest than a banks credit card division charges.

In reply to by East Indian

GreatUncle East Indian Wed, 08/30/2017 - 12:37 Permalink

The joke though is they offer a paltry $24 for the 18-24 year olds so they can think they are rich.Mwhahahaha ... an example for me is making an item for someone on an outsourced item for $200 then expects me to do the job providing the $30 to come in at < $230. Nope pulled it fuck the job it is not worth it if I am losing my time and $10 every go.So it is in fact in the real economy already.

In reply to by East Indian