Why Would Anyone Accept a Negative Interest Rate- #Shorts - Economics Explained - video Dailymotion

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00:00Several government bonds from around the world are now offering negative yields.

00:04As in, if you buy the bond, you are going to get back less money than you put into it.

00:09So, who in their right mind would buy an investment where you are guaranteed to lose money?

00:14The answer is mostly large institutions that need somewhere safe to keep their cash.

00:19You see, regular bank accounts just don't cut it when you have tens of billions of dollars,

00:24because they are normally only insured up to a certain level.

00:26In the US, for example, that level is $250,000.

00:30Government bonds are, for obvious reasons, fully backed by the government.

00:34So, if, for example, Apple was afraid of inflation of the US dollar,

00:38and wanted to keep its vast piles of cash as euros, let's say,

00:41it would have to pick a safe country, like Germany, that uses the euro,

00:45and take whatever they were offering for their bonds.

00:48This might still work out to be a profitable decision, though,

00:50if the euro loses value to inflation at just 0.4% per year slower than the US dollar.

00:57So, that's whyφ laufen gets less than the US dollar.

00:59I желato.

00:59So, that's why my firm goes up as a bank doesn't have to think a business.

01:03So, let's try it for itself.

01:06It's a моз entiology.

01:07So, you can do, and go ahead and find an alles because of all theолот.

01:11So, you will see how it works out and what's going on.

01:13There will be aatz.

01:14There's aeté of AI on Р inhabited 2012 w Patriot

01:16in aком случае with the US dollar.

01:16So, do you need an old beekeeper to see top again?

01:18It's a tight athlete.

01:19So, you can do that specifically.

01:20I just thought you said that if you've got business,

01:21because of everything, you raised a lot of access to resources that you can keep� back on using desktop.

Why Would Anyone Accept a Negative Interest Rate- #Shorts - Economics Explained

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