3SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,James Lutter D. James (Jim) Lutter is the Senior Vice President of Trading and Operations at PMA Financial Network and PMA Securities where he oversees PMA Funding, a service of both companies … Web: pmafunding.com Details Both Japan and Europe have been experimenting with negative interest rates since the 2008 recession. With their economies experiencing anemic growth and inflation at subdued or deflationary levels, central banks have turned to a negative interest rate policy. The goal is to reduce rates to a level below zero, enticing individuals and corporations to invest or borrow rather than hold low yielding investments and deposits. With this concept, forcing money back into the economy should increase inflation and growth.In 2009, Switzerland central bank implemented a negative interest rate policy; Denmark followed in 2012, the European Union in 2014 and Japan in 2016. Though policy is one way to manipulate rates, yet another way that has been used in conjunction is through negative rate term debt issuance.How does it work?Central banks generally charge negative interest rates on excess reserves held at the central banks. In practice, deposits that are held above the required levels are charged the negative interest rate, which is paid directly to the central bank. This is usually done through a tiered system where commercial banks pay for holding excess reserves with the central bank. The goal is to discourage commercial banks from maintaining large cash balances and, in turn, incentivize loans.Each country has its own variation of a tier system. However, for the most part, negative interest will be charged on reserve amounts up to a threshold at which point any balances in excess of the threshold will be charged zero interest. The goal with these tiered systems is to mitigate effects on bank profitability as negative interests in effect become an expense to banks – thus impacting income.To date, retail customers have been insulated from receiving negative interest rates on their bank balances. There seems to be a general consensus among banks and politicians that negative rates charge on retail deposits would be unfavorable. However, Denmark recently announced they will begin charging negative rates on balances in excess of deposit insurance limits.The big question for the U.S.: Are we headed for negative rates?The short answer is, not in the near term. The U.S. has experienced stronger growth than most industrialized economies. Fundamentally, the U.S. economy remains on strong footing with mild inflation, low unemployment and strong wage gains. The U.S. economy is not experiencing deflation, as is the case with Japan and Europe. Also, the U.S. is still the world’s reserve currency, and by implementing a negative rate policy has the potential to severely damage this position. All this said, it is important to acknowledge the exogenous factors of negative interest rates from much of the industrialized world. Presumably, the longer other countries hold negative interest rates, the U.S. may be forced in this direction in order to maintain a competitive currency on the global stage. Furthermore, being in the late stages of on economic expansion with historically low interest rates doesn’t leave the Fed with a lot of room to work with to combat a slowdown.Is negative interest rate policy working?What we know– countries that are deploying negative interest rates are seeing households saving at a higher rate and holding more cash instead of spending. The same holds true for business, which is using low-cost cash to buy back stock. Financial institutions are not loaning money as intended and are seeing compression on spreads. This highlights the peril of central bank policy makers. Interest rates are only one means available to stimulate an economy. Co-author: Todd A. Terrazas
New Delhi: Virat Kohli, the Indian cricket team skipper, has had a hostile relationship with the Australian public. In 2012, during the Sydney Test, he showed the middle finger to a section of the crowd that had been constantly abusing him while in 2014/15, his confrontations with the Australian players had not made him a very popular figure. In the first Test against Australia in Adelaide in 2018, Kohli was subject to boos from a small section of the crowd at the stadium and this has led to sharp criticism from former skipper Ricky Ponting and Travis Head, who smashed a vital fifty in the first innings.“I don’t like seeing it at all. It didn’t worry me as a player when it happened in England a couple of times. You’ve almost got to accept it as acknowledgement for what you’ve done in the game. It’ll be water off a duck’s back (for Kohli), I’m sure. He’s probably had worse things happen to him on a cricket field,” Ponting told the official Cricket Australia website.Read More | Virat Kohli creates history in Adelaide Test against AustraliaPonting had faced plenty of booing from the crowd during Australia’s Ashes series in England in 2009. This is not the first instance that Kohli has been booed. Apart from Australia, the Indian skipper was booed in an IPL game between Royal Challengers Bangalore and Mumbai Indians and this came in for sharp criticism from Kohli at that time.Read More | Kohli’s celebration would make us look like ‘worst blokes in world’The Australian crowds have often targeted players from the opposition, most notably England pacer Stuart Broad during the 2013/14 Ashes series Down Under. Broad had refused to walk for a catch in the Trent Bridge Test in the previous series and this led to plenty of criticism.Travis Head, who scored a vital 72 in the first innings to restrict Australia’s deficit, also criticised the behaviour of the crowd. “He’s a pretty good player and probably doesn’t deserve to be booed but that’s how it is. It’s probably not needed but that’s the crowd,” Head said.India are gunning for a win in Adelaide as they look to break their hoodoo Down Under and register their first-ever Test series win in Australia. For all the Latest Sports News News, Cricket News News, Download News Nation Android and iOS Mobile Apps.
Health care and housing options are limited for seniors in Southeast, but a few adult day programs are offering relief for care providers, families and friends. They’re often a stop-gap solution until space opens up in a home.Download AudioThe Bridge in Juneau is one of two formalized adult day programs in Southeast. The program costs $180 a day and accepts Medicaid waivers. (Photo by Elizabeth Jenkins, KTOO – Juneau)At Juneau’s Bridge Adult Day Program, it isn’t all bingo and reruns of Lawrence Welk. Kelsey Wood, the program supervisor, says the aging adults go on field trips. They play Nintendo Wii –virtual bowling is a favorite. And they do what some might describe as contemporary exercises. The seniors recently learned a pop-culture dance phenomenon known as the Nae Nae.“There’s some leg movements that go to it. There’s like a stanky leg thing or something like that. … They’re like, ‘This how people dance right now?’ And they’re like, ‘Oh, we remember when the twist was popular,’” Wood said.Like a lot of things at The Bridge, Wood says the exercises can be adapted for seniors with limited mobility. And that same thoughtfulness is given to people with memory loss, which most of The Bridge’s clients experience.This morning, Wood is playing 7-up with some of The Bridge’s clients.“It helps if you put all of the suits together,” Wood explains.Later there’s a party planned in celebration of Wood’s upcoming wedding. But for now, she’s helping Beth Fletcher play her best game. And after a few minutes playing cards, Fletcher is throwing down winning hands. It’s an activity she’s nostalgic for. She grew up playing Buck Euchre with her siblings in Minnesota and says she loves the attention she gets from Wood.“Boy, my memory isn’t very good you know, I’m 90 something. So I can’t remember a lot of what I did when I retired,” Fletcher said. “When I was young, I rode horseback. Before I could walk, I rode horseback. … My mind doesn’t hold things very well. But anyway, I had a great life.”Fletcher comes to The Bridge four times a week. The difference between a program like this and a nursing home or assisted living facility is she goes home to family at the end of the day. For some seniors, it’s the best option.“For folks that are waiting to get into a (Pioneer Home), are waiting to get into nursing-level care, it fills that gap,” Wood said.Depending on the location, state-run Pioneer Homes screen applicants on application date and other criteria. In Juneau, it’s first-come, first-served. In Sitka, it’s based on date and level of care. Still, the wait can sometimes be years before a space becomes available. And Juneau’s Wildflower Court, which is a nursing home, doesn’t admit clients–based on memory loss alone. So are there enough adult day programs to help fill the gap in Southeast?“No, there are not,” says Maryanne Mills, the director of Southeast Senior Services.“In fact, a couple of years ago, we worked with Centers for Community to submit a proposal to Alaska Department of Health and Social Services for a program in Sitka,” Mills said.There are only a few formalized adult day programs in the region, like Ketchikan’s Rendezvous Senior Day Services. The grant intended for Sitka wound up going to the Matanuska-Susitna Valley.“And of course right now, with Alaska’s fiscal crisis, getting state general funds to start such a program is probably not going to happen in the immediate future. We trying to hold on to what we have.”Mills says keeping the doors open for adult day programs saves money when you consider the alternative. Remember, most of the people at The Bridge have some form of memory loss, which could mean expensive full-time care.So for those who do stay at home, Mills thinks the time to socialize is important.“It’s sometimes not the natural way to be,” Mills said. “A lot of people tend to isolate when they get older, but that’s not what they should be doing if they want to live a long independent life for as long as possible.”Back at The Bridge, the cozy living room atmosphere has been transformed into a pretend wedding. The seniors wear frilly corsages and sip sparkling grape juice.DeeAnn Grummett and her 78-year-old husband are looking on. Grummett brings him to The Bridge four days a week. And after a while, Wood and her fiance are ready to walk down the aisle. She’s wearing jeans, clutching a bouquet made out of sparkling brooches — the one she’ll carry on her actual wedding day.“You know I pop in and out at different times and they’re always engaged in an activity. They’re not just sitting around staring at the walls,” Grummett said. “They seem to enjoy each other’s company, and the staff is wonderful.”Both Grummett and her spouse are on the waitlist for the Pioneers’ Home, but she wants to keep him with her as long as she can. She says The Bridge plays a crucial role in helping her do that.“At this point for us, it’s much better than even in-home services because what we need is a social experience. My husband has reached the point where he can’t plan and carry out his own social life, and he needs a social life,” Grummett said.She says when she drops her husband off in the morning, and if he’s in a not-so-great-mood, he’s always feeling better by the end of the day.