/biz/ - Business & Finance

[Anonymous No.25353137]

I have seen 30 year fixed mortgage rates at low 2.something percent. Inflation is right at 3%

why would the bank lend you money and take that risk for a return under inflation?

i checked the fees and they were not enough to offset this

[Anonymous No.25353173]

>>25353137
Because all of this is a lie and the reality is that they mean to keep us enslaved for all eternity?

[Anonymous No.25353228]

Because if the bank gives you a loan of $100k, they aren't actually out $100k. It's just numbers on a screen.

[Anonymous No.25353251]

why do you post a picture of a 12 yr old boy

[Anonymous No.25353287]

>>25353137
Because real rates are already negative and the fed has a gun a banks' heads forcing them to lend.

[Anonymous No.25353304]

Because loans are how the FedReserve get money into the economy

[Anonymous No.25353313]

>>25353137
It's simple. They print the Batman. I mean the money.

[Anonymous No.25353314]

>>25353137
>return under inflation?
because governmental bonds are 0 or -2%
So getting a 2% return on a physical house beats the alternatives.

[Anonymous No.25353315]

>>25353137
Because if you're buying at these rates it's also likely you're just jumping on the bandwagon and you're financially retarded
>loan $300k to a retard
>retard fails to pay bills
>bank takes back house
>sells house to someone for $330
>bank made interest on your payments and now holds an asset of greater value
gg thanks for playing

[Anonymous No.25353366]

>>25353313

[Anonymous No.25353395]

>>25353251
it's cute. It's a girl, I believe

[Anonymous No.25353397]

https://en.m.wikipedia.org/wiki/Fractional-reserve_banking

[Anonymous No.25353399]

>>25353315
>buying at these rates it's also likely you're just jumping on the bandwagon and you're financially retarded
wat

why would you not want to borrow under the inflation rate, it's free money

[Anonymous No.25353417]

>>25353251
It's Kiara

[Anonymous No.25353472]

>>25353395
That’s a dude, sorry to break it to you.

[Anonymous No.25353551]

>>25353137
It's about risk adjusted returns.

[Anonymous No.25353662]

>>25353399
i think youre missing what im saying
if youre ready to buy a home its likely you already did it, rates falling below a relatively arbitrary threshold isn't your buy signal
its like someone waiting for tax free weekend to do all their spending. if you're furnishing an entire house, sure, go for it. but most people are buying things like a new laptop

the rate of inflation is set to skyrocket regardless so it doesnt matter if it's 2% or 3% or even 4% because the rate of inflation is going to be upwards of 5-6%

[Anonymous No.25353670]

>>25353137
I thought i knew how a bank worked, but then they began with the negative interest rate on money you have in your bank account.
So if you have more than 50K€ in your bank account, you have to pay X% a year, just like interest rate, but where you pay it.

How does this make sense? one would think that a bank would somehow be able to earn money from the money the customers have in their accounts, why would it be deemed "bad" for a bank that people have money in the bank, that they have to charge you to offset this?

It doesn't make sense, from any rational point of view.. and yea, all the other shit, like negative yield bonds (german bonds), is also ludacris, why would anyone buy a bond with a negative yield?

[Anonymous No.25354038]

>>25353670
Because there will be deflation in the next years

[Anonymous No.25354073]

Is that dumb whore still alive?

[Anonymous No.25354293]

>>25354073

no

[Anonymous No.25354512]

>>25353670
>It doesn't make sense, from any rational point of view.. and yea, all the other shit, like negative yield bonds (german bonds), is also ludacris, why would anyone buy a bond with a negative yield?
because they think it's the safest place to put the money

[Anonymous No.25354800]

>>25353137

That's a boy child.

[Anonymous No.25355126]

>>25353670
It's how your central bank twists your arm into parking your money in other assets like real estate or stocks in order to pump prices. Also if nobody has money in the bank, a bank run cannot happen thus avoiding a "financial disaster"