Something Economists Thought was Impossible is Happening in Europe…Negative Interest Rates

Negative Interest rates?!  Economists thought these were impossible, so how are they happening now in Europe?  A simple case of supply and demand of government and some corporate bonds.  There is currently more demand than supply, so it’s actually driving the rates into a rare negative position.  But then why would anyone actually buy a negative interest bond?  Why not just hold onto your cash?

The following article explains why anyone would be motivated to buy negative interest bonds and in more detail why they are happening in the first place.

For the complete article please click here.