Interest rates in Europe might go negative. Thatâ??s a sign of how weak the European economy is. Today in Bratislava, the capital of Slovakia, European Central Bank President Mario Draghi told reporters that the ECB might actually charge banks for the privilege of stashing cash with it overnight.
In other words, the demand for cash is so weak that Mario Draghi might not even take it from the banks when itâ??s free. The ECB doesnâ??t want more cash because it canâ??t lend it out profitably. Cash, to the ECB, is becoming more like, say, cars, whose drivers have to pay to park them overnight.
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