On top of that, instead of getting rid of the people who issued bad debt ten and twenty years ago, and let new people into the banking system, we instead kept the same inept cleptocratic money managers in charge, but gave them more firepower.

I like how they devoted a whole paragraph to that point, although it's probably the most important one in the whole article.

So, imagine what negative interest rates will do. Seriously, I can't imagine it, I sense it will be bad, but I'm not sure how it will play out.

On the other hand, if the fed will pay me to borrow money, I'd love to borrow as much as I can and loan it out on Prosper or Kiva etc.

Alas, the banks get these primo rates, not average joes... who are still paying %15 on credit cards. (money the bank borrows at near zero) Risk compensation and profit do not account for probably even half of that spread.

The free money was supposed to be used in conjunction with increased government spending on infrastructure projects. Unfortunately the latter half of that ideal fell through and banks ended up taking that free money and utilized it in not so good ways.