This article was written by Tyler Durden and originally published at Zero Hedge.
Editor’s Comment: Prolonged negative interests rates mean that only the bankers, and a few selected partners, are on top of the financial game. That’s exactly what’s been happening for years and years now, and why the banks rule.
The Federal Reserve has been absolutely devastating to the average American’s pocketbook as well as personal freedom. In this case, Yellen has us all stuck in a condundrum… classic tails you lose, heads they win.
Yellen Says Negative Rates On The Table “If Outlook Worsened”
by Tyler Durden
As the market now diligently calculates the suddenly surging odds of a December rate hike, here’s Yellen with a preview of what will happen once the rate hike cycle is aborted…
- YELLEN SAYS IF OUTLOOK WORSENED FED MIGHT WEIGH NEGATIVE RATES
- YELLEN SAYS NEGATIVE RATES COULD HELP ENCOURAGE BANKS TO LEND
… just as it was aborted in Japan in August of 2000 when the BOJ also decided to send a signal how much stronger the economy is by hiking 25 bps, only to cut 7 months later and to proceed to monetize not only all net Japanese debt issuance a decade later, but to hold half of all equity ETFs.
The good news:
- YELLEN SAYS SHE DOESN’T SEE NEED FOR NEGATIVE RATES NOW
- YELLEN SAYS FED SEES ECONOMY ON STEADY PATH OF IMPROVEMENT
Because when have the Fed’s forecasts before ever been wrong.