[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 53 KB, 562x841, FB_IMG_1565707258779.jpg [View same] [iqdb] [saucenao] [google]
15230915 No.15230915 [Reply] [Original]

What kind of merchant trick is this?

>> No.15230973

>>15230915
this is what you would do before house bubble burst

>> No.15230986

>>15230973
this
it is done because the bank expects even lower rates

>> No.15230994

>>15230915
don't ask questions goyim, use this opportunity to borrow as much as you can!

>> No.15230999

>>15230973
yeah that makes sense.

>> No.15231119
File: 87 KB, 800x598, 1564046414512.jpg [View same] [iqdb] [saucenao] [google]
15231119

>>15230994

>> No.15232117

Remember how socialism "works in Denmark"? Here comes some Venezuelan style hyperinflation.

>> No.15232149

this doesnt not benefit the housebuyers in any way

house prices are as inflated as ever in denmark, and you still need to put down 20% of the house's price + lawyer stuff, so you still need to be well off to buy a decent house

this basically lets boomers sell off their crap houses to desperate people thats rushing in to get a negative rate

>> No.15232329

>>15232117
Venezuela was fucked by neo con zionist sanctions

>> No.15232384

>please buy our real estate goy! We swear we are offering these low internet rates because we are so charitable and not because housing is about to go belly up while we short everything!

>> No.15232503

>>15232149
if the houses dont reduce down to below 20% of their current value plus what you paid in fees, you'd make a profit, wouldnt you? or is this not a fixed rate, and youll get fucked when the market adjusts and you now owe interest on your overpriced mortgage?

>> No.15232521

Lads we are so close to trading Bitcoins for McMansions it’s almost unbelievable the timeline we’re in. This negative rates fiasco is like putting a neon sign on the RE market screaming for a crash, it’s so obvious. All of us basement dwellers will soon, very soon be trading just a few Bitcoins for incredible custom shag pads. Hold on a little longer we’re almost there.

>> No.15233149

>>15230915
>>15230973
>>15230994
No seriously, what's the catch? Is this a variable interest rate and they're expecting it to skyrocket or something?

>> No.15233188

>>15230915
>NPC buys a house because free money right?
>Total en global economic collapse
>NPC's house is now valued at only 30% of original purchase price, mortgage still the same

seems like a proper /biz/ opportunity

>> No.15233214

>>15232329

You sure it wasn't because there's literally drug kingpins, terrorists and all sorts of criminals in power?

>> No.15233238

>>15230915
What part is confusing? You still have to BUY the house, even if it is cheaper to loan the money for it than to buy it outright. It's a bet that the house values will go down. Really doesn't seem that strange to me.

>> No.15233283

>>15233188

Doesn't matter if you lock in the interest for the entire duration. 30 years of hyperinflation won't allow you to buy a hotdog with that kind of money. You can always just make payments anyway even if you don't have to.

>> No.15233300

>>15233149
Not a catch, some people actually think it stimulates the economy. Because they print money and that money gets used. What they don't get is that is just a mathematical artifact. Since a lot of the printed money goes to the housing market because that's mainly what loans are for, inflation is lower and wages don't increase but house prices get way bigger. It's all over Europe, the cities have huge house prices. There's really no problem since if the prices go up they can make the rates go even lower to be tractable. The problem is that if the housing market loses demand for some reason, or they decide to stop printing money, house prices keep tumbling down, making the free money you got still paying a premium. But now they're like "negative interest rates are bad because of unstable housing market", then they increase the rates and people get BTFO. That's my take anyway

>> No.15233387

>>15232521
It won't crash until there is a new economic vision amd leadership to usher in the next model. We can print money and circle jerk indefinitely. So long as people can have things and elites can have more.

Most people are either drones or fuck ups going from existential crisis to crisis. They lack the conviction to just let things fail.

>> No.15233428

>>15232521
I pray for this future.
>t. 27 y/o still living at home.
>t. only a pathetic 2.1BTC

>> No.15233434

>>15233387
this why would the bubble ever burst? they can print infinity money and they can bring in infinity immigrants to give them "free" (paid for by taxpayer) housing.

>> No.15233499

>>15233300
That seems pretty damn insidious. Effectively, your money becomes increasingly worthless and the only way to even keep up, apparently, is to go neck deep into dept. At least until it all comes crashing back down to reality.

>> No.15233523

>>15233434
Because money isn't wealth. Money is a CLAIM on wealth. Sooner or later, too many people will be exercising their claims on wealth and things will start to unravel as people realize that the underlying real wealth doesn't come anywhere near to satisfying all the claims.

>> No.15233660
File: 254 KB, 1124x1116, on_negative_interest_rates.png [View same] [iqdb] [saucenao] [google]
15233660

>what kind of merchant trick is this
come and see

>> No.15233697

>>15232503
That's level 1. Now realize how fucked they are to be giving YOU this deal.

>> No.15233773

>>15233660

Fiatpilled and based

>> No.15233789

>>15233434
Cant bring infinite migrants. Once there are more migrants than locals, they can take over.

>> No.15233890

Banks are forced to hold their own net cash position as a receivable on the central bank.

Normally, when interest is positive, they get some interest accrued on this net position.

When the interest is negative, they accrue an interest charge instead. Therefore they try to convince clients to off load their cash position (which would lower the banks).

As long as they pay lower interest to you than the central bank it's a net benefit for the bank. Currently danish national bank interest is negative 0,65%

>> No.15233897

>>15233523
You have money and debt mixed up

>> No.15233965

>>15233214
It's not like other leaders are boy scouts you know...of course, you could say that's why any place has it's problems.

>> No.15233971

>>15233214
It was the jews that made oil 80+% of gdp, and then subsequently crashed it from $100-50 a handle, because we all know how much jewz like a bargain.

>> No.15234055

>>15233971
oil is a public market traded by every country and participants.

everyone is trying to fuck over everyone.

of all the things you can blame on the jew, i disgree on this one

>> No.15234059

>>15233897
No I don't. All money is literally a claim on wealth and nothing more. Or do you think those fancy pieces of paper are actually worth something beyond the wealth you can claim with them?

>> No.15234283

>>15233897
But isn't our money debt now anyway?

>> No.15234322

Why wouldn't another bank (or exceedingly wealthy person) take advantage of this? They could basically just steal money from the lender if they always had the capital to cover the loans.

>> No.15234438

>>15234322
Banks cant its against their central bank agreement,
A wealthy person in theory could, buy RE and get a .5% interest, but there are still holding costs on the RE, mortgage costs, etc that would negate the .5% and if you're rentals are dependent on an extra .5% discount on your mortgage to stay profitable you have much bigger issues.

>> No.15234592

>>15234322
They do. Wealth inequality is at an all time high.

Louis XIV was exploiting his population less and he and his clique still got their heads cut.

>> No.15235006

>>15234283
ive never understood this line of thought. if money is debt, more money = more debt. but the opposite is the case. no one is trying to have less money

>> No.15235025

>>15234322
stock divs would probably be safer and more effective

>> No.15235264

>>15235006
state debt is created by state bonds, state bonds are bought by commercial and central banks as reserves for currency expansion.

>> No.15235657

Dane here, I read some Danish articles about it when it happened.
The -0.5 interest rate is only for 10 year mortgage loans in one single bank but interest rates have been falling in general.
Now I'm kind of a brainlet when it comes to loans but according to Jyske Banks website if you borrowed e.g. 500000 kroner at the negative interest rate you'd have to repay a total of 543721 kroner over a 10 year period because of fees and stuff like that.
Their website says something that I don't completely understand, something along the lines of "The negative interest rate contributes to paying off the loan more quickly. One increases the extraction of the bond instead of sending money to the investor."
They mention the US and China as reasons for this being possible, so it definitely has something to do with the global economy.

>> No.15235799

>>15233499
Monetary system is nothing but a modern day slavery.

>> No.15236001

>>15235006
Learn maths and physics.

>> No.15236004

>>15236001
no

>> No.15236746

>>15230915
the benchmark rate is -.65% so they're still making the 15 basis point spread.

>> No.15236907

>>15233890
>Therefore they try to convince clients to off load their cash position
That would require trust, not some negative rates. There is no trust in the current losers running the system, not from consumers not from investors, the losers themselves don't even trust themselves and their propaganda armies are made up of even bigger losers.

Don't buy there bags, let them die with them

>> No.15237587

>>15230915
1) Banks are forced to flood streets with money
2) People get money (in loans) which they spend for their obligations or business / personal needs which boosts declining economy
3) Numbers look good so politicians can tell people economy is growing (in reality they are just buying time)
4) Interest rates increase
...
5) ooga boga

>> No.15237601

>>15230915
If they had more merchants in daneland, they wouldn’t have to resort to such bullshit.

Look at the US’s rates. Compare that to merchantless societies like japan and Hollandaise. We’ve weaponized our merchantry.

>> No.15237713
File: 94 KB, 325x244, 1503713472431.gif [View same] [iqdb] [saucenao] [google]
15237713

It's over

>economy is "doing fine" and interest rates are still goin negative
>IMF released a how to report on implementing "deeply" negative interest rates recently

>> No.15237715

>>15232521
Bitcoins will never reach Mansion parity, you’re beyond delusional.

>> No.15237894

> Hypothetical Situation;
*Let's say, you have $5G in burgerland 20% card debt
*Borrow $6G in Strudel bucks
*Put Strudel bucks through bank exchange or paypal to turn to Burger bucks, pay off card debt
*Strudel bucks crashes, you pay back the original amount at -0.5% interest
*Dutch jews win because you're paying back worthless currency with good currency
*You win because you eliminated high interest debt

So where is the catch here, exactly, is there a trick they can pull that I'm missing?

>> No.15238711

>>15237894
If the dollar deflates relative to the kroner, you are hyperturbofucked.

>> No.15239235

>>15232521
Fucking based and whitepilled. Honestly all of the economic indicators I’m seeing are freaking me out and I’m worried we will see a nightmarish collapse when combined with the current political tension in the world but hopefully we’re actually in the timeline you describe and things will be alright.