Jamie Dimon says JP Morgan is preparing for the risk of zero rates in the U.S.
“’Obviously, you’ve got to worry about the long-term effect of those interest rates,’ Dimon said. ‘But it’s hard. There are businesses it doesn’t affect at all. And there are businesses where it just sucks into your margin and there’s very little you can do about it.'”
USAGOLD note: In countries where negative rates are already in effect, bankers have complained that the profit has gone out of lending and that, of course, is a bank’s primary business. The central banks will likely be keeping a close eye on the financial system for signs of instability brought on by this fundamental change in the way the monetary system operates.