

France sells bonds at negative interest rate - stfu
http://hosted.ap.org/dynamic/stories/E/EU_FRANCE_FINANCIAL_CRISIS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-07-09-10-45-53

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subleq
How is this possible? Wouldn't you just hold on to cash instead of buying
bonds at a negative rate?

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rmckayfleming
For an individual yes, hold the cash. But from what I can gather, banks in
some countries must keep their reserves in something other than cash
(typically bonds). EDIT: It encourages banks to lend, rather than sit on a
giant pile of money.

