Is an alternative other than negative interest rate possible? Currently there is a lot of talk about negative interest rate and possibly US would be adopting that. Denmark was the first country in the world which has "successfully" applied negative interest rate. How do Danish banks make their money there?

A lot of people in finance in US say that negative interest rate would not work in US and would cause a collapse of the banking sector. Given that we are currently in one of the biggest bond bubble in history, is an alternative other than negative interest rate possible because any rise in interest rate would cause a massive debt sell off. The last time FED tried to raise the interest rate by .25% the markets dropped by 20%. So i am trying to understand if we are in trouble, because if the interest rate is increased, we are looking at a deep recession but if the interest rates go negative we are looking at stagflation. Have I understood this right?
Negative interest rates means that if you take a 1.000 loan, you will pay 900 to the lender. At the same time, if you deposit this same 1.000 in a savings accounts, you will withdraw 900. This is an expansionary monetary policy. In other words, low or negative interest rates estimulates the consumption and destimulates the savings. 

It also weaken a country’s currency, which boost the exports and pushing up import costs. Like Japan and USA, Denmark is a big exporter. One of Trump strategies - along with direct taxations into imported goods - is to decrease interest rates to gain advantage against China.

The stimulus for comsumption is to boost the economy and increase the aggregate demand. An investor would prefer to invest in a company or enterprise rather than government bonds, and a family would rather buy a new house today than save for 5 years.

Other monetary policies could be the reduction of the reserve ratio or quantitative easing, but all expansionary policies can lead to bad consequences in the future, like high inflation rates.