The depressive nature of negative interest rates

Synchronised slowdown: A nighttime view of buildings of the banking district in Frankfurt. Last month’s IMF World Economic Outlook concluded that the world is in a synchronised slowdown. With geopolitical tensions higher than ever, there is no sign that global leaders can agree on how to address this problem. — AP

Negative interest rates don’t make sense. Yet, nearly US$16 trillion of the world’s bond market yields are in negative interest rate territory. Can this continue forever?

Negative interest rates mean that if you lend money to someone, you have to pay the borrower rather than receive interest from him. It pays to borrow and it does not pay to be a lender. No wonder bank shares are not doing well.