Low interest rates and the influences on banks

No, I dumped her lying skanky ass for good.

I'm not at all surprised. She's psychotic.

>They fucked us

Germany, idk buddy. I feel the standard to be quite low overall.
Well for what i know for now is that it's kinda stablising, the inflationrate is going up and when it hits the 2% mark the EZB will start putting up the interest rates again, though the problem is, how low does one want to go. I just want some insight in how it came to be, and what the challanges/opportunitys are. Well sorry to hear that, i know how hard that shit is. I used to be an asshole, wouldn't do such shit now.

Oh and in regard to banks. I think they might profit from economical insecurity. At the moment it is hard to break the wall, but if companies fuck up and dont meet the high expectations then the bubble will pop and people flee into real estate and metals that are cheap goods for the banks at the moment.

Nah, I'm so much better off. I'm not going to help you though, I hope you understand that. Peace.

Well i appreaciate any help.
Well at the moment they can't earn on giving out loans, they have to invest themselves. Only problem i see is that the market relies on the prospect of neverending economical growth.

The inflation is quite stable at the moment. The negative interest phase works quite well because there are always people or institutions that need to park money even if they lose worth. I dont think banks have such a big problem with the current situation. They can take the money they lose in form of higher credits aka bonds from the govs and those profit from a rising economy/industry in form of tax.

Well that's the point, a lot of companies that have a good standing are losing in this sort of climat, as they being riskavers will let them lose. It's like go all in or "fall behind".
I guess you're right in saying that it all just depends on the performance of the current companies, if it doesn't work out it could very well another big crash. Thanks for highlighting that.
On a sidenote, does anyone know where to torrent books?

The financial market is quite conserved only when there is value created from nothing like mining or energy it gets positive. Banks are more an economical sinkhole because their reserve loan cutting creates sinkholes on the stock market via high expectations and following bubbles. It might end with a bubble in a few years but that is almost normal every 10-20 years

Overall, Western currencies are massively overvaluated when you look at the supply times the value of a single unit. The reason we are not feeling the repercussions yet is because a lot of the newly created money is still in the hands of banks in the form of debt. When you find out that there is way more debt in USD than actual USD (virtual and tangible) in circulation, you can derive that we are currently in a massive fiat bubble and defaults are inevitable at some point.

What these low interest rates are doing is essentially increasing the tendency for people to lend thereby increasing the amount lended and finally creating ever more debt. The current inflation rates are basically senseless when taking in consideration that fiat has turned into a bank ran ponzi scheme.

The optimal rate of inflation in modern economics is 2%, as long as we keep living in this fantasy, that will be sought after through fiscal and monetary policy.

It's not that difficult. Low interest rates means bank can lend from the central banks for cheap.
This means they aren't that dependent on private people's money so normies get less interest for their money.
The idea of low interest rates is that market makers like banks / exchanges / brokers which often sell / make money with hedged positions (up down they don't care and live from fees) can prep up markets by distributing that liquidity.
The idea is that the cheap money will create more investments because it doesn't make sense to keep that money in the bank no more.
In a nutshell.
Different idea is QE, quantitative easing in which central banks buy illiquid assets so holders have liquidity short-term but have to buy back at some point.
Low interest rates means that credits are cheap as well, so with low interest rates there is a massive influx in real estate because you can basically get money 'for cheap' so smart money buys real eastate because the debt burden isn't as heavy as with higher interest rates.
I am a stock market vet, predicted the first rate hike a year before it happened to be in december that year while retards like Peter Schiff were in denial one day before it happened.
Taught everything to myself.
If you own crypto you can pay me to teach you, but you may have to correct my bad english.
t. german gordon gekko

Also you don't even seem to be able to ask the correct questions, what do you want to know exactly? It's a long way to that bachelor user.

Thanks guys, this is helping me quite a lot. If anything else comes to mind i would be more than happy if you care to share it.

The point of the matter is that i have a quite "easy" task ahead of me. I am trying to distinguish the what the general literature is dictating and what people close to the market think is happening.
It's a quite new phenomenon with interest rates going below 0, which makes it quite easy to write a paper about it without going to deep as it is a new topic. The point of the matter is that i can just show the fallacies that other people have and redirect it to what "I" believe to be right. That in itself being right is not really the point, making an effort to highlight the differences is very important.

Also the part about people being in denial is mostly because they built their lives upon it.

Thanks a lot for your help, i will take everything into account.

First thing you have to lose is confirmation bias.
On paper QE isn't supposed to work, but it did and Trump can unironically thank the the FED and Obama for this.
I know how to write a bachelor's degree.
Take a look at Japan they are very progressive and act as example for both pro's and con's of loose monetary policy.
I am not sure about the actual amounts but at times they were buying even regular stock assets with BOJ money, in a volume of around 80 billion per month to keep it going.
Problem with zero or below zero interest rates is that it most often won't get where it is supposed to to kick of real world investment / economy, it's often just paper money creating more paper money or overcooking the real estate market.

Also you must understand how low interest rates affect currencies, a 6 billion market daily, and how cheaper currencies affect economies.
Trump's idea that a trade surplus by a cheap dollar is good and a strong dollar is bad is dinosaur think.
e.g the US slowly transforms into a service society accumulating wealth / buying trade surplus of the world with a strong dollar.

guys if anybody is interested in a stock / market pro / oracle hook me up, dogecoin not accepted
urlogicisflawed agmail

And OP..don't be lazy

>about the low interest rates and how it infulences banks
you might as well have picked the topic air and how it influences weather

Um sorry, i should have said this at first, i'm german to, so i'm monstly going to focus on the European side of things (i know that our economy is very depending on the US market and that i will have to build up some sort of relation between the two)
I don't believe that Trumps thoughts are completely stupid, neither did i ever comment on it. You are kinda strawmanning me here, i have barley no predecision towards anything, as i don't really care about it.
(just for clarification i do believe Trumps strategy is possible shortterm and can get good numbers, but exculding yourself from the worldmarket can be detremental if he doesn't get back in time.

I am taking anything said into consideration and try to work myself around it, the more information, the better it sounds and gets.

Yup, that's the curx, i am trying to have a theme that is easy to find stuff on and work around, but have the possibility to go indepth if i want to.

The problem with a mounting trade deficit is that at some point the repercussions of these deficits have settled. What is happening right now in the US is that the Federal Reserve is building and increasing amount of debt and these bonds are being sold to the countries that extract wealth from the US. The missing part in the puzzle is that the US has no actual way of paying back the debts that are being created. The only reason people are buying their bonds is because the US and USD have world wide hedgemony and that somehow amounts to guaranteed debt repayals. Which it doesnt. The only way the American government can pay back their debts is by tax hikes or debasing the currency.

Also being a contrairian (which it seems you are) makes it quite easy to be right about things that are coming, because every win you have is a lot bigger than any loss you receive.
Being someone inside all of it and trying build opportunities is where it gets hard, succes is relative.
Isn't the debt also something good? I mean you have somesort of leverage at that point, the belief of america makes america.

Without the US, there is no world economy. World trade is entirely dependend on the petro-dollar. What happens in the US, happens worldwide.
Once the US deals with the problems it has been running from for the past decades, the world will feel it. The US will probably fall from grace and EUR/RMB/YEN pairings will probably be introduced.

The debt is good, until it isnt. The debts creates world wide interest in the wellbeing of the US. China keeps buying up US bonds because without it, China too, would see a massive recession. The problem here is that it is not a permanent solution. Right now, we are at about 100% debt to GDP. Could you imagine 500%. At some point the chickens will come home to roost, sooner rather than later in my opinion. This building debt as it is right now is a literal ponzi scheme. I buy debt for interest, someone will buy that debt with a new loan with interest, and someone will buy that. Etc.

I agree.
That being said i do believe being in such a position holds a LOT of power.
If dealing with their probelms means retreating from the world market would leave the option for other countries to build a way without america.
The adaptation never ceases to exist until all of us are dead. I don't believe it to be the right time, nor the wrong time to do it.
I think we agree, just that you are emphasising the point of destruction, whilst i just want to write my bachelor in an easy mannor.

Am I really expected to believe one user just randomly posted another anons ex gf? On fucking Veeky Forums?

I wouldnt advise writing a bachelor on the ending of the world hahah
Just keep it simple and within established schools of thought

>writing my bachelors
>writing the entire degree
What bull shit r u smoking?

That's exactily what i'm aiming at, really appreciate the input buddy.
No idea, i haven't given it thought, i just went with the flow.

It's a terminology used in german, i guess i just mixed it up. Nice to see thought that every board has this kind of pettiness.