from Wiktionary, Creative Commons Attribution/Share-Alike License
- n. Alternative capitalization of ZIRP, "zero interest rate policy".
Sorry, no etymologies found.
By charging 2.50 to 3.00 for each withdrawal even if it's only 20$, also by stacking your finance charges to maximize their take every time you overdraw. zirp got us into the current mess, I fail to see how it will get us out.
And yet no one mentions that zirp is much lower than 2\% and is going on for years and years now.
Right now yes banks get a great spread at near zirp and lending at 5-6\%.
I have no idea how they will manage the other side of this coin - makes me very worried about the inflationary ramifications a few years from now but until then - enjoy your zirp, your liquidity trap and the 5. 0\% and lower 30 year fixed
At some point the market will realize that close to zirp in the US and massive expansion of the Fed balance sheet via treasury issuance is not great for the dollar.