In a normal, healthy, functional economy, banks operate to make money – profit – interest – by loaning to home borrowers. In today’s brink of Great Depression II Bizarro world of government mandated financial shenanigans, banks have been pressured to offer negative interest rate mortgages to keep the party going. Some people suggest there is a planned event, a catastrophic collapse on schedule soon, (see comments here, for example) but that until that time everything will be done to keep public perception optimistic. In a healthy economy, banks don’t pay you to borrow money. Be suspicious. Your Spidey-sense should be tingling when you read about things like this.
Zerohedge.com’s article explains this money-losing bullshit:
“What this means is that if you buy a house for $1 million and pay off your mortgage in full in 10 years, you would pay the bank back only $995,000. No mortgage payments would be due between the purchase and payoff date, so effectively a borrower only has to repay principal… with a small discount, guaranteeing that the bank loses money on the loan.
“It’s another chapter in the history of the mortgage,” Jyske Bank housing economist Mikkel Høegh told Danish TV, according to Copenhagen Post. “A few months ago, we would have said that this would not be possible, but we have been surprised time and time again, and this opens up a new opportunity for homeowners.”
“In practical terms… the negative interest rate will act as a ‘subsidy’ to the repayment. And the repayment portion will become smaller and smaller as the debt is reduced,” explained Høegh.
How is that possible? “Yes, I hardly understand it either. In fact, I said it can’t happen. But we have figured out how to have a negative rate mortgage” explained Høegh.”
But WHY have they figured out how to have it? Is faith in paper money failing so miserably that they have to pay you interest to take it? If so, why? Something is rotten in the State of Denmark, and it’s going to spread. Financial collapse is not unlikely in the next year or two, and wars and civil wars could easily follow as societies unravel.
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