Photo: Flickr / zagatbuzz
Some banks will pay you interest for the privilege of holding your money, but other banks are basically just giant vaults that charge you for the privilege of having an ultra-secure place for your cash.Switzerland is known for this kind of vaultsmanship. The country is known for its gold vaults, and so on.
And so it’s no surprise that at times like this, short-term bond auctions in Switzerland continue to get priced at negative yields.
The whole country is a vault, and people are paying Switzerland for the privilege of depositing their money there.
At some point, perhaps, people will feel secure enough to invest their cash in other institutions, and perhaps to demand a little bit of yield for their savings. But not these days. And the government of Switzerland, which is now getting paid to borrow, gets the benefits of a fine tradition of money storage.
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