Nugget’s News: Negative Interest Rate Bonds & The War On Cash Explained
Why would someone buy a bond that has a negative yield? Today Alex Saunders explains how negative yield bonds work & how it affects the world of finance. This is having profound implications on all financial markets & many are suggesting this could be the catalyst for the next financial crisis or wider economic collapse.
Chris Carosa described the situation in Forbes as: “Picture going to buy a car. The dealer gives you two options to pay for the new vehicle: cash or credit. When rates are above zero, buying a car on credit will cost you more because you’ll have to pay interest on the loan. When interest rates are negative, it’ll be cheaper to buy the car on credit than with cash!”
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