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Have Negative Interest Rates Saved European And UK Banks? (In Your Dreams, Stanley!)

This is a syndicated repost published with the permission of Confounded Interest. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

The European and UK banks have struggled mightily since the financial crisis of 2008 and late 2007. The European Central Bank has thrown zero interest rates and asset purchases at the struggling banks, to no avail.

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European nations now have negative sovereign yields, at least under 10 years in maturity. And despite The Fed’s Vice Chair Stanley Fischer’s assertion that negative rates are working …. they aren’t. At least in terms of putting EU banks back to 2006 levels.

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Despite negative sovereign yields in Europe and zero interest rates and asset purchases by the ECB, European banks have still not recovered from the financial crisis 2008 and late 2007.

Here is a video of Mario Draghi trying to light up the European banks with his monetary flamethrower.

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