Banks poised to charge for deposits

Greek citizens rush to banks to try to withdraw cash.

Federal Reserve Chairman Janet Yellen suggested the Fed might consider negative interest rates, which effectively means financial institutions would charge customers to keep money in an account.

Several of Europe's ailing commercial banks have imposed the measure in a desperate attempt to reinvigorate the economy. But in the United States, banks have generally tried to entice customers with various interest rate advantages and other banking benefits, such as free checking and savings or even free money to open accounts.

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That could soon change.

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As Zero Hedge reported: "Yellen says if [rates] outlook worsened, fed might weight negative rates. Yellen says negative rates could help encourage banks to lend."

Charging customers to keep deposits proved disastrous in Japan, and banks aborted the practice in 2000.

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Yellen tempered the statement with a softer outlook, saying "she doesn't see need for negative rates now," and the "economy [seems] on a steady path of improvement," Zero Hedge reported.

But as WND previously reported, U.S. economic statistics have been badly skewed. In July, financial eyes were wide open on the retail sector, watching with concern as several big name stores – from Macy's, Office Depot and Pier One to Pep Boys, Children's Place and Barnes & Noble – announced massive closings. At the same time, the White House has been presenting a rosy view of the economy, painting the jobs numbers and national growth data as irrefutable positives.