Economy Fights Crisis With Cheap Borrowing, Can Bitcoin Take Over?

The third-largest bank in Denmark, Jyske Bank, now offers a 10 year fixed rate mortgages at -0.5%. This means customers will pay back less than the amount borrowed. Mortgage fees are still payable, likely negating any benefit to borrowers, but some see this unprecedented move as indicative of a troubled economy.

Economy In Crisis

Indeed, the European banking sector is in decline, as evidenced by the recent cull at Deutsche Bank. And while management pinned this on an unprofitable equities market, the broader picture shows a systemic failure to face the reality of the on-going situation since the last recession. According to the Financial Times:

“At the end of 2009, the eurozone lurched from the financial crisis into one centred on regional sovereign debt. This kept its banks in crisis mode while their American competitors concentrated on cleaning house and adjusting to new realities… The European Central Bank’s unprecedentedly low interest rates hurt banks’ profits in the…