“Negative interest rates are an act of desperation, a signal that traditional policy options have proved ineffective…” according to this article at Bloomberg
“By early July 2016, approximately $13 trillion in debt with negative yields existed in the world.” (article)
I’ve thrown away most of my old books on how markets work because I couldn’t find any chapters on negative interest rates.
All I know if they make me very nervous. It’s a sign that “something ain’t right”.
But then again, I’m not an economist…