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The increase in the interest rate turned mainland China's stock markets into Asia's worst performers Thursday.
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The equilibrium yearly interest rate turns out to equal 8.7%%.
In Japan, interest rates turned negative on Tuesday as the Bank of Japan attempted to bolster growth and pull the country out of deflation.
After interest rates turned up in 2004, mortgage-makers could no longer count on custom from homeowners looking to switch to new mortgages at cheaper rates.
In the 1970s, finance was deregulated, interest rates turned volatile and savings and loan associations (protected by another agency) took huge risks.
The flight to quality is also benefiting government bonds - indeed at one point investors were even paying the US Treasury for the chance to buy its bonds as interest rates turned negative.
Equitable underwrote about $17 billion of these contracts, and when interest rates turned down, losses mounted; they are expected to reach about $1.5 billion before most of the contracts mature later this year.
Negative interest rates turn this arrangement on its head.
"Once interest rates turn up, that will effectively signal the end of the rush to the public debt markets," he said.
In an upside-down world where interest rates turn negative and you could end up paying a bank to lend them your money, what are the alternatives?
The European Central Bank once again refused to reduce interest rates, turning aside pleas from some European political leaders and charting a staunchly separate course from that of the United States Federal Reserve.
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