Belgium has raised a record €21.9 billion ($23.65 billion) from savers in a bond sale designed to compete with bank deposits, a sign of growing popularity for government debt as discontent grows with lenders failing to keep up with surging interest rates. The sale marks the biggest funding drive from households in Belgium’s history and is likely Europe’s biggest retail bond sale, the country’s debt agency says.
Banks have so much liquidity that they don’t even need to hold on to all of the current deposits. Otherwise the rates would go up.
I wish the Netherlands would hold a sale like this, only for persons, with a sensible limit of a million or something like that.
There are literally no downsides.
Isn’t it beneficial for the Belgian state though? I didn’t understand it as a favor that the government makes for us citizens. As I understood, this debt has lower interest rates for them. If so, there’s no need to limit who can invest.
Correct. And with a lower debt the country can also borrow other money from the market at lower rate too. Win win. I hope this sparks a discussion about why aren’t banks a public service yet? Private gains in wealthy times and bailed out by taxpayers in crisis time. Hope they fix the roads though
You can simply buy Dutch government bonds through your bank if you want to do so.
Absolutely, I can easily do that right now, but it takes more effort than your average “I have a bank account and that’s it” person is willing to spend.
Having a “public sale” sounds like a great idea for all those people.
As a Belgian I put in a good chunk of my savings. I don’t have a mind for finance and investments so it’s a win win. As close to a no risk investment as you’re gonna get, no need to keep an eye on it, and helps the state.
And if western Europe does end up collapsing, I don’t think you want any investments, other than canned food and a deep basement.
Imho, this speaks nicely for the Belgians too. Investing on their public good (disclaimer: idk shit about who’s ruling there) instead of privates.