TSX:HSE.PR.B - Post by User
Post by
RagingBull3on Jun 09, 2020 7:00am
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Post# 31127533
Why Negative Rates Most likely not going happen here....
Why Negative Rates Most likely not going happen here....1) Bank of Canada stated many times that they were at their "Effective Lower Bound" and have other tools that they will use.
2) Negative Rates runs against the ultimate goal of wanting a Healthy growing market. Negative means Negative.....which will put pressure on the economy to go negative. Market growth is determined by Risk and Reward (risk vs yield). Low/Negative Rates = Market want low/no Risk, No Risk no Growth.........
3) History has shown Negative Rates (or in other words no reward) are/will be BAD for the economy. It does not have to be Interest Rates that the government manipulates, it could be anything. No Reward = BAD. History is littered with examples where the government tries to "HELP" but ends up doing more damage.
4) Rates already took a jump up......hopefully going back up to pre-Covid19 levels.
This are my opinions.... But you should always prepare for ANYTHING. Anything is possible these days.