/biz/ - Business & Finance

[Anonymous No.25574194]

20 FUCKING YEARS?

Is the global economy in such shambles that a fixed 20 year 0% return is a viable investment?

[Anonymous No.25574369]

can we see 0 rate for decades?
what about lowering rates even further into the negative? -1.5% or -4%?
dont think RATE CAN ONLY GO UP FROM HERE.
you might be stuck with a fixed 0% when all your friends got -3%

think about this - if you've got a 1.5% mortgage you're already in the negative. if you're on a 1% savings account you're already negative because of inflation.

[Anonymous No.25574511]

>>25574194
>banks are handing out 10 year loans with lower interest rates than the 10 year US treasury rates

so I guess the markets are completely broken and interest rate doesn't reflect risk in any way?

[Anonymous No.25574569]

>>25574194
0%? They are basically paying you to buy a house

[Anonymous No.25574610]

>>25574194
Haha WTF

[Anonymous No.25574653]

>>25574194
Wow get a load of these Danish faggots their government cares about them lmao GAY

[Anonymous No.25574672]

Ya but thats obviously variable rate which will reach tripple digits during hyper inflation no way this is the fixed rate.

[Anonymous No.25574711]

>>25574569
Yes problem?

[Anonymous No.25574725]

>>25574672
Can you not read a single sentence? Or do you just not understand fixed rates?

[Anonymous No.25574754]

>>25574194
wtf

[Anonymous No.25574765]

>>25574725
Fixed variable bro it can go up or down but also remains the same

[Anonymous No.25574830]

>>25574765
Ah right yeah nice one bro

[Anonymous No.25574851]

yes, it’s actually possible to institute socialism in a way that makes the rich richer AND doesn’t fuck over the middle class. makes you think, doesn’t it burgerbros?

it’s like our rich people aren’t content with just making more money. it’s like they actually hate us and want us to suffer even when it doesn’t benefit them in any way.

[Anonymous No.25574916]

>>25574851
How exactly do the rich make money off of a zero percent interest rate, that’s literally why people give out loans

[Anonymous No.25574937]

>>25574194
It seems great but what they do not tell you is that the requirements to get a mortgage now is much more difficult. Poor fags will not be able take advantage of this

[Anonymous No.25574974]

>>25574569
>They are basically paying you to buy a house
They get their money from taxes. That you give them. You are paying people to buy a house.

[Anonymous No.25574985]

>>25574916
Perhaps the 0% is just the interest rate, while the comparison rate (inclusive of fees etc.) is more like 0.5%

[Anonymous No.25575023]

>>25574916
>Mortgage house with 20% downpayment
>Rent out house
>profit

[Anonymous No.25575053]

>>25575023
I think you misunderstood his question, he means the mortgager not the mortgagee

[Anonymous No.25575075]

>it's free real estate

[Anonymous No.25575088]

>>25574937
>the requirements to get a mortgage now is much more difficult
Of course. We tried approving poorfags with bad or nonexistent credit a while back. Doing that caused the 2008 crash.

[Anonymous No.25575103]

>>25574851
This isn't a country versus country thing. The entire world is on the same extremely-fucked ship.

[Anonymous No.25575165]

>>25574916
>>25575053
Oh sorry
>give 0% interest rate
>borrowers line up
>borrowers can't pay mortgage
>foreclose home and take equity with them

[Anonymous No.25575225]

>>25574194
That shit is just ridiculous. Basically this is what happens when commies try to make free market and CB's work their way. The consequences will be felt for decades to come.

Is there a single country on earth that follows libertarian financial policies? Some African nations come close but lack the capabilities to safeguard personal property physically and legally

[Anonymous No.25575276]

>>25575165
This is almost literally what happened in 08, and nobody wanted those POS houses if they are foreclosed on massively, it makes no sense

[Anonymous No.25575280]

>libertarian financial policies

[Anonymous No.25575312]

>>25575276
Well, something something learn from history something something repeat itself something something

[Anonymous No.25575362]

>>25575165
it seems however that the means testing for these loans isn't irresponsible
>>25574937

[Anonymous No.25575385]

>>25575312
Yeah but in 08 the banks were still making interest on the loan

What is the incentive here

Interest is what you pay to a lender for borrowing a ton of money, it’s an investment for the person helping you invest

This means you’re borrowing money for free

[Anonymous No.25575479]

>>25575385
The incentive would be the equity the borrowers are gaining. The bank would get the house + equity if the borrowers can't make their mortgage. They can then sell the house again.

[Anonymous No.25575490]

>>25575385
One explanation is the that banks are able to take out loans from institutional markets at an even LOWER rate

i.e. borrow at -0.5% from institution, then charge customer 0% and make a net 0.5%

[Anonymous No.25575508]

By the way this is not good, an interest rate is the reflection of the value of money. People love their 2.5% mortgages now but it means money is less expensive to borrow meaning it is WORTH LESS

If interest rates are zero, does that mean money is WORTHLESS?

[Anonymous No.25575579]

>>25575479
Ok so
Banks don’t want foreclosed houses they want money
Foreclosed houses sell at auction for less than they would on the market

And this would be an actual clear as day ponzi scheme, having the intent and only financial incentive of the program be to have the buyers default?

Banks want borrowers that pay their mortgages

[Anonymous No.25575634]

>>25574369
The common man will never be able to reap the benefits of 0% interest. Only banks and super wealthy

[Anonymous No.25576098]

>>25575165
>nooo! interest rates have to be 29.9% just like in usa