Euros Devour Negative Interest, Banks Eat Their Lunch

Laugh or cry at the warped influence socialism has on Europeans, but now we’re told “Homeowners in Europe Are Paid to Borrow.” Yep, the WSJ cites one Portuguese woman who’s getting $45 deposited each month into her checking account just for having a home mortgage with the bank.

The newspaper explains that so-called “negative interest rates” were supposed to be the Euros’ brilliant, if temporary, answer to stagnant, if not tanking, economies saddled with a sovereign debt crisis. Yet, lo & behold, “Covid-19 [is] pushing benchmarks deeper into negative territory, widening the pool of mortgage holders who receive interest.” Translation: The Negative Territory appears to have a black hole at its center & may wind up eating these Euros’ lunch.

Indeed, the WSJ piece questions this “upside-down relationship,” but also notes that, while mortgagees may be getting paid to borrow (altho even THAT small perk can be offset by “administration fees”), many are getting CHARGED to make deposits past a designated threshold amount. Brilliant, as the Brits might say? By all means, let’s import negative interest rates like some progressives enamored with Euro-style globalism are urging?

Davd Soul