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Financial Times (March 22)

2016/ 03/ 24 by jd in Global News

Many hope that negative interest rates will “encourage banks to lend more plentifully and cheaply and help support economic recovery.” This might instead prove “a dangerous experiment with diminishing positive impact.” The optimistic forecasts overlook “how financial intermediaries may actually respond.” Negative rates “erode banks’ margins. They give lenders an incentive to shrink, not grow. They encourage banks to seek out opportunities overseas rather than in their home markets. They also risk disruptions to bank funding. All go against the grain of the central banks’ desire to ease credit conditions and support financial stability.”

 

Wall Street Journal (March 22)

2016/ 03/ 24 by jd in Global News

“Europe seems determined to keep treating this as a policing problem, or at least as anything other than a call to bolster military efforts in Syria…. There’s a role for policing in a counterterror strategy, but also a limit. Brussels…can’t live in perpetual lockdown. Until the West is prepared to fight this terrorist threat at the source, Tuesday’s victims in Brussels won’t be the last.”

 

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