Bavarian Banks Not Depositing Money at ECB

ILLUSTRATION - 5000 Euro in 50-Euro-Scheinen werden am 03.02.2016 am Schalter einer Sparkasse in München (Bayern) in einer Geldzählmaschine gezählt. Foto: Matthias Balk/dpa (zu dpa «Bundesregierung wirbt für Bargeld-Limit von 5000 Euro» vom 03.02.2016) +++(c) dpa - Bildfunk+++

Bavarian banks have figured out that negative interest rates are insane. They must pay the ECB to hold their cash. They have decided it is better to store their cash and eliminate deposits at the ECB. These people are just brain dead. They think negative interest rates will somehow “stimulate” the economy. They fail to grasp that people and banks can now be induced to hoard money and not spend it.