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Negative interest rate mortgage launched in Denmark

 
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UndercoverElephant



Joined: 10 Mar 2008
Posts: 10444
Location: south east England

PostPosted: Tue Aug 13, 2019 10:04 pm    Post subject: Negative interest rate mortgage launched in Denmark Reply with quote

https://www.theguardian.com/money/2019/aug/13/danish-bank-launches-worlds-first-negative-interest-rate-mortgage

Quote:

Danish bank launches world’s first negative interest rate mortgage

Jyske Bank will effectively pay borrowers 0.5% a year to take out a loan


WTF?
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BritDownUnder



Joined: 21 Sep 2011
Posts: 619
Location: Hunter Valley, NSW, Australia

PostPosted: Wed Aug 14, 2019 4:02 am    Post subject: Reply with quote

Sharia compliant?

On a more serious note you could get that mortgage and buy at the wrong time and still lose money.

From what I understand in the 1920s there was a lot of deflation and some years the prices fell by 7%. No idea what happened to the interest rates. I think before WW2 the interest rates changed every 10 years or something.
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fuzzy



Joined: 29 Nov 2013
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Location: The Marches, UK

PostPosted: Wed Aug 14, 2019 8:00 am    Post subject: Reply with quote

They get a property collection for a small cost with all survey and diligence born by the mortgagee. Think of it like us buying krugerrands with bitcoins.
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raspberry-blower



Joined: 14 Mar 2009
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PostPosted: Wed Aug 14, 2019 9:06 am    Post subject: Reply with quote

Just the tip of the iceberg:

Wolf Richter: Financial World gone nuts: $15 trillion in Negative yielding debt
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clv101
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PostPosted: Wed Aug 14, 2019 9:44 am    Post subject: Re: Negative interest rate mortgage launched in Denmark Reply with quote

UndercoverElephant wrote:
https://www.theguardian.com/money/2019/aug/13/danish-bank-launches-worlds-first-negative-interest-rate-mortgage

Quote:

Danish bank launches world’s first negative interest rate mortgage

Jyske Bank will effectively pay borrowers 0.5% a year to take out a loan


WTF?


It's not that big a deal, loans devalue normally by the rate of inflation. This is just like adding a bit more inflation... Or perhaps the bank is anticipating deflation, so this effectively offsets some deflation.
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stumuz1



Joined: 07 Jun 2016
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Location: Anglesey

PostPosted: Wed Aug 14, 2019 10:34 am    Post subject: Reply with quote

Also, loans are how you get fresh money into the system. This may be a disguised peoples 'QE'
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RenewableCandy



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Location: York

PostPosted: Wed Jan 22, 2020 11:12 pm    Post subject: Reply with quote

stumuz1 wrote:
Also, loans are how you get fresh money into the system. This may be a disguised peoples 'QE'

Nice!
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kenneal - lagger
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PostPosted: Thu Jan 23, 2020 7:54 pm    Post subject: Reply with quote

Are you just catching up, Candy, or have you been hacked?
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RenewableCandy



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PostPosted: Fri Jan 24, 2020 12:05 am    Post subject: Reply with quote

Just catching up.
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stumuz1



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PostPosted: Fri Jan 24, 2020 10:43 am    Post subject: Reply with quote

Just for info:

Trump at Davos wind bagged on about US 401k accounts being up, the stock market up, employment being at record levels.

The one thing he never mentioned?

USA has just covertly (dishonestly, secretly, use your own adjective) launched QE 4

Yes, the price of imaginary financial assets have gone up in line with newly printed out of thin air money.

A financial genius he is not

https://www.ft.com/content/33cbd24a-ea13-11e9-a240-3b065ef5fc55
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kenneal - lagger
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PostPosted: Fri Jan 24, 2020 3:26 pm    Post subject: Re: Negative interest rate mortgage launched in Denmark Reply with quote

UndercoverElephant wrote:
https://www.theguardian.com/money/2019/aug/13/danish-bank-launches-worlds-first-negative-interest-rate-mortgage

Quote:

Danish bank launches world’s first negative interest rate mortgage

Jyske Bank will effectively pay borrowers 0.5% a year to take out a loan


WTF?


This is pointing to the economic collapse of the EU. Germany has rampant house price inflation because the interest rates are too low and rampant house price inflation always ends with a house price crash and bank defaults as we saw in Ireland and Spain not so many years ago. The ECB can't raise the rates any further because this would lead to defaults in the Med countries, Greece and Italy especially, so they are stuck in a bind of their own making.

The EU will either have to dump the Euro, not a thing that they could countenance, or impose full central government and taxation on the Eurozone countries. EU countries outside the Eurozone would then be "offered" Eurozone membership or second class non voting membership of the EU.

Good job we're on our way out.
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emordnilap



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PostPosted: Fri Jan 24, 2020 5:14 pm    Post subject: Reply with quote

stumuz1 wrote:
Just for info:

Trump at Davos wind bagged on about US 401k accounts being up, the stock market up, employment being at record levels.


Just about everything he trumped about is bollocks.
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