Economist Martin Armstrong warned this week that banks in the US will soon start charging you for deposits.
This comes in the form of negative interest rates. Yesterday, the European Central Bank became the first central bank in history to cut main interest rates to negative. And they will likely pass this cost onto customers in the form of a ‘maintenance fee’.
“In the USA, we are more-likely-than-not going to get the negative rates directly passed to consumers by the banks who will claim it is the Fed who will do so at the requests of the banks. Larry Summers has set the stage. This is just how it works. He flew the balloon to get everyone ready. This is likely to be bullish for the stock market,” writes Armstrong.
“The talk behind the curtain is to impose negative interest rates on the consumer,” he added.
And you thought you were doing the banks a favor by putting your money in their vaults.
No, soon it will be considered that they are providing you a service by holding your money for you so they can make money off your money.
Sound like a good deal?
In the week that the European Central Bank cut its deposit rate for banks from zero to -0.1%, economist Martin Armstrong warns that negative interest rates are coming to the United States, meaning that Americans will be forced to pay just to keep their money in the bank.
In a move described as unprecedented, the ECB became the first central bank in history to cut any main interest rate to negative yesterday, part of a package of measures designed to encourage banks to provide more loans to businesses and households. Many view the policy as a desperate sign of Europe’s faltering economic recovery.
Critics claim that the action will do little to spur growth while threatening to cause inflation and unemployment. While banks in the EU have not indicated whether or not the costs will be passed on to consumers, the New York Times’ Neil Irwin asserts that this is inevitable.
“Banks will most likely pass these negative interest rates on to consumers, or at least try to. They may try to do so not by explicitly charging a negative interest rate, but by paying no interest and charging a fee for account maintenance,” he writes.
What about Americans? Will they also soon be charged by the bank simply for depositing their own money? Yes, according to economist Martin Armstrong.
Armstrong, who is noted for calling the 1987 economic crash to the very day, warns that U.S. banks are preparing a raft of new account fees that will serve as a de facto negative interest rate.
Let’s see how they like hundreds of thousands of people withdrawing all their money
Time to take charge people
This is how they repay is for bailing them out
We shouldn’t have bailed out anyone
Bitcoin here we come
$#%&!@* banks
You Know that is Not going to go off ! WE pay enough Now!
The interest rates are so low that we almost pay them to use our money in the first place. Maybe we all need to go back to cash for everything and use the mattress as our bank.
their paying next to nothing in savings interest and they get big interest rates when they loan it out sounds like they are as greedy as the oil companys
it’s cheap enough to use places like Ace Express too, where you can cash , pay bills and have a card too. banks are not too big to fail, they’re too greedy not to fail.
banks use OUR money as floats to make huge money paying next to nothing in interest. To charge for deposit is nothing but GREED.
can’t say it enough…Credit Unions!!
$#%&!@* off banks and continue to shut down 1 by 1