跳过导航
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.


自动生成的音频
自动生成的音频

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.

Summary

Investors are now lending money at negative interest rates.

In August 2019, a Danish bank began, in effect, paying people to take out home mortgages. Those who take out loans at negative interest rates will pay back less than what they borrow. Governments and companies across Europe already borrow money at negative interest rates. Issued as bonds, this kind of debt now amounts to $15 trillion worldwide.

Amid fears that the world is moving toward a recession, several countries – including Japan, Germany and France – as well as some major...

About the Author

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


Comment on this summary or 开始讨论