Negative interest rates show finance has gone postmodern. The system has become self-referential and value-free, in a way that might please cultural theorists. That’s supposed to help the real economy run more smoothly. But it’s risky, high-handed and not fair to savers. It is hard to get used to the idea of paying governments to take money, for as long as five years in the case of Germany. Even yields on some corporate bonds have turned negative in the secondary market. Of course, explanations exist: ultra-loose monetary policy in a time of disinflation; a surfeit of funds versus available safe investments; and the ... (full story)