Tuesday, April 01, 2008

INTEREST RATES TO DROP ANOTHER 4 POINTS?

Does anyone know anything else about the following?
In an unprecedented move, Federal Reserve chairman Ben Bernanke said yesterday that he expected to lower interest rates at least another four percentage points. What would make this historic is that it would bring interest rates into negative territory, requiring people with bank accounts to pay interest rather than receive it.

Critics of Bernanke's plan have expressed concern that the negative interest policy would be an unworkable model, but Bernanke asserted that its time has come, claiming that it will actually help to balance the national budget. In response to complaints that bank clients may eventually be unable to pay interest on their accounts, Bernanke said he has found an answer after consulting with the country's leading financial institutions. "Together we have engineered an agreement by which bank clients will be able to pay interest simply by charging it to their credit cards," Bernanke explained.

1 comment:

David said...

Hmmm. What is today's date?