ML-Implode News - World's Longest Negative Rate Experiment Shows Destruction of Savings & Investment Machinery

In Denmark, where rates have been below zero longer than anywhere else on the planet, the private sector is saving more than it did when rates were positive (before 2012). Private investment is down and the economy is in a "low-growth crisis," to quote Handelsbanken. The latest inflation data show prices have stagnated...
Denmark has about $600 billion in pension and investment savings. The people who help oversee those funds say the logic of cheap money fueling investment doesn't hold once rates drop below zero. That's because consumers and businesses interpret such extreme policy as a sign of crisis with no predictable outcome.

The problem here is really quite obvious: when you peg rates at negative, the result is only "simulative" from the perspective of people borrowing from the central bank. All other borrowing and lending in the economy (which is supposed to be the main part of it) becomes anti-stimulative, because who wants to lend at negative rates (i.e., be guaranteed to lose money)? Thus you get a snake-eating-its-own-tail effect as central bank forced-lending consumes the market, while the overall financial market continues to shrink amidst the contrary incentives, leading to more of the same.

Relevant:

World's Longest Negative Rate Experiment Shows Destruction of Savings & Investment Machinery