So policy advisors are now talking "bring euro negative rates to USA."
As one commenter noted, to paraphrase him, it is only likely to cause people to move deposits from Bank of America to the local branch of Sealy Posture-pedic.
Commenters are often better than the article itself.
Feel free to forward this by email to three of your friends.
The U.S. Federal Reserve might need to cut interest rates to as low as negative 2 percent, far lower than levels other global central banks have tested, a former Fed economist said.The idea is it will force savers to spend. Again, interest rates are intended to largely entice people to call for goods and services they otherwise would not.
That’s what would likely be needed to engineer a recovery if the U.S. economy were to fall into a recession in the next couple of years, Marvin Goodfriend, who was an economist and policy advisor at the Federal Reserve’s Bank of Richmond from 1993-2005, told CNBC’s “Squawk Box” on Thursday.
As one commenter noted, to paraphrase him, it is only likely to cause people to move deposits from Bank of America to the local branch of Sealy Posture-pedic.
Commenters are often better than the article itself.
Feel free to forward this by email to three of your friends.
2 comments:
Are retailers and shippers subsidizing the costs associated with serving online customers? How long can this last?
"Consumers increasingly are shopping online instead of driving, often long distances, to stores. Online shopping also brings with it deals and new entrepreneurial opportunities. These consumers, however, are the most expensive to serve for both retailers and delivery companies."
"Residents here are even starting to buy groceries online because frequently it is cheaper than at the town’s United Supermarkets."
http://www.wsj.com/articles/e-commerce-a-boon-for-rural-america-but-it-comes-with-a-price-1473615741
Yes! The "success" stories talk about money in, but not about costs out. People who do the web right, like Victoria Secret, used it to cut costs. What they used to process by hand themselves from mail order is now self-service checkout on the web. VS still sends out 450 million catalogs a year, but VS processing 4.5billion in catalog sales was shifted onto the customers. Now that is done right.
John
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