financial repression

Berlin housing

Berlin strikes a deal to freeze rents

Yves Bonzon (Julius Baer) | Back in June, we argued that financial repression, which consists of transferring wealth from creditors to debtors, can take several forms and is not confined to negative yields. At that time, the city of Berlin launched an initiative to freeze rents for five years from 1 January 2020. The governing coalition now struck a deal that looks fairly similar to the initial draft.



Sub-zero returns

Financial repression

Why are interest rates so low? We have explained that the reason is the weak credit situation for financing investment.



China shadow banking

China: shadow finance for the masses

Iris Mir | Tight control of capital accounts has pushed China to a financial deadlock.  Chinese savers are looking to new online investment platforms amid a  lack of substantial wealth management options. Last year China’s Internet payment platform launched the online investment platform Yu’e Bao to offer its users the possibility of investing the idle money on their Alipay accounts and getting much higher benefits than any traditional bank. More than 43.03 million people already enjoy its advantageous financial products. The opportunities of this business model are huge  and many other Chinese internet giants are following suit.