As the spread of negative interest rates is set to continue, German bank boss John Cryan is voicing his thoughts on the monetary policy tool. Cryan is the CEO of Deutsche Bank, Germany’s largest bank and a bank that is recognized all over the globe.
As more financial experts weigh in on the potential effects of negative interest rates, Cryan made his opinion fairly clear, stating that such a policy could have “fatal consequences.”
Deutsche Bank has felt the effects of negative interest rates which can reduce profitability. (Just look at how DB stock has dropped by nearly 50% year to date). And they are by no means the only institution to feel the heat from sliding rates. Unfortunately for borrowers and bank customers, losses experienced by these large financial institutions can spill over directly to the consumer.
In terms of current monetary policy, Cryan was quoted as saying “Monetary policy is now running counter to the aims of strengthening the economy and making the European banking system safer.”
Needless to say, the effects of such monetary policy can be far-reaching, and severe.
Consider current retirees who rely on interest income to get by. These savers have been essentially forced to take risks at this point in order to generate some type of positive return.
What about massive pension funds who rely on short-term rates to generate a low risk return?
In our view, there is trouble brewing on the horizon. And we are not the only people sounding the alarm. Financial heavyweights like Bill Gross and Jeff Gundlach have voiced some serious concerns, and world-renowned hedge fund manager George Soros placed some very large bearish bets not long ago.
Where there’s smoke there’s fire…
These issues are not going to go away anytime soon. In fact, some of these issues could take years and years to fix.
Is now the time to sit around and do nothing or is now the time to be proactive about your money and financial future?
Yes – we realize that stocks are at new all-time highs.
No – we don’t care.
What goes up usually comes down. While the market has rallied over the last seven to eight years, all of those gains could be undone in a matter of weeks or months.
The choice is entirely yours. If you happen to see our point of view and agree, now may be the ideal time to consider an allocation in physical precious metals like gold and silver.
These assets are coveted for their inherent value and reputation as a protector of wealth, not because they have been artificially inflated by easy money policies and QE.
Explore your options today before gold prices rise further. Speak with an Advantage Gold account executive to learn more about the potential benefits of physical gold or silver ownership. Our professionals can answer your questions, and can even show you how to acquire and hold these key assets using your IRA account.
Don’t wait for negative rates to come to your bank or for the next massive stock market crash. Act now. Call us today at 1-800-341-8584 to get started.Tags: advantage gold, banks, bill gross, deutsche bank, eu, gold, monetary policy, negative interest rates, recession, stock market crash