The Folly of Negative Interest Rates: Financial Advisor Tim Hayes Discusses in SOCO and New England Monthly Magazines
Tim writes about negative interest rates in his investment article for SOCO and New England Monthly magazines. He believes that this folly may serve as a wake-up call to shift the economy towards sustainable growth.
Financial Advisor Tim Hayes discusses the folly of negative interest rates in his April investment article in SOCO and New England Monthly magazines.
Hayes highlights how “Negative interest rates are another misguided attempt by the Central Banks of these countries to increase bank lending. What they are hoping for is, if they charge banks for depositing money, banks will decide to make more loans to earn more interest and not leave their money at the Central Bank and watch it deplete from deposit fees.”
The article discusses how “A Central Bank penalizing banks for having too many reserves, when it was the Central Bank’s bond purchases (quantitative easing) that had credited the banks with the reserves in the first place, brings to mind a quote from a famous but misguided economist, Karl Marx, that history repeats itself “the first time as tragedy [the financial crisis], the second time as farce [negative interest rates].”
Hayes hopes that the folly of negative interest rates will hopefully be the wake-up call needed to move the economy from one over-reliant on finance and banking for debt-fueled growth to an economy “built on the blocking and tackling of economic growth: entrepreneurship, education, manufacturing, investment, and infrastructure.
These are the opinions of Financial Advisor Tim Hayes and not necessarily those of Cambridge Investment Research. They are for informational purposes only and should not be construed or acted upon as individualized investment advice. Content provided via links to third party sites should not be considered an endorsement of content, which we cannot verify completeness or accuracy of.
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Financial Advisor Tim Hayes
What Is My Financial Advisor Experience
I’ve held an industry securities registration for 30+ years and am subject to SEC and FINRA oversight.
How Much Do I Charge?
Most clients pay fee-only or an hourly rate. The size and complexity of the client’s wealth management and financial and retirement planning determine that fee.
Some clients pay a commission, mainly those with smaller accounts, i.e., Roth IRAs, some public-school teachers with 403b retirement accounts, or parents or grandparents who set up a 529 college savings plan.
Do We Need to Meet in Person?
The first introductory and fact-finding appointment can be in-person or by phone. The next meeting where I provide my recommendations should be in-person. (For the time being, telephone, Zoom, and email are replacing some in-person meetings.)
Subsequent meetings during which we monitor your progress and investments can be done in-person or by phone, email, Zoom, or Skype – or, more likely, a combination of these meeting types.
Contact Tim
Tim has offices in Boston and South Dartmouth, Massachusetts. He’s licensed to handle securities in 8 states: Massachusetts, Rhode Island, New Hampshire, New York, New Jersey, Connecticut, Maine, and Florida.
