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Banks are paying people to borrow money. That’s alarming news for the global economy.
Article

Banks are paying people to borrow money. That’s alarming news for the global economy.

David J. Lynch
The Washington Post, 2019
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Editorial Rating

8

Qualities

  • Analytical
  • Eye Opening
  • Hot Topic

Recommendation

In early August 2019, a Danish bank began to offer 10-year mortgages at negative interest rates, which means that people will end up owing less than what they borrow. That sounds terrific for potential homeowners but terrible for banks and, potentially, the global economy. In this eye-opening article, journalist David J. Lynch explores how this topsy-turvy world of below-zero interest rates is working now in Europe and Japan, and why it could happen in the United States as well.

Take-Aways

  • Investors are now lending money at negative interest rates.
  • The trade war is deepening fears of a worldwide recession.
  • “Negative-yield” bonds could have deleterious effects on financial systems and economies.

About the Author

David J. Lynch is a financial writer for The Washington Post.

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