Quote: (06-05-2014 08:06 AM)Ardbeg Wrote:
It seems like a preventative measure against deflation. The disruption this may cause in money market accounts is outweighed by the specter of getting out of deflation once it catches on.
Also, its only 10 basis points of negative carry. Not a lot on bank reserves.
Best course of action: start buying hedged (if in U.S. dollars) European equities.
Anyone who even considers themselves an expert should know this is going to snowball in a bad way.
I do not trust these financial institutions to have any clue on what they're doing.