On: The Fed Wants to Test How Banks Would Handle Negative Rates

[Jtsummers]

You may not spend, but you might invest. The options at that point are:

  0% Bank accounts
  0% Mattress/Freezer
  ?% investments (stocks, bonds, direct to businesses)

[marcosdumay → Jtsummers]

More like:

-0.3% Bank account 0% Mattress [-100%..0%] Investments

No government goes into negative rates when the times are good.