Danes Get 20-Year 0% Mortgages

But it keeps renters renters. I'd rather forego my tax deduction for owning my apartment and bake it into the normal tax. I feel it's unfair a friend can pay the same amount as me each month, but instead of paying down a loan he loses everything to a landlord. And in addition I also get to deduct the ~rents~ interest.

The actual interest rate is -0.75%. If they are offering 0% mortgages, the bank is taking 0.75%.

From your point of view as the buyer. You basically are being given an amount of free money to on the books take an amount of debt.

The thing about negative rates, it's effectively society is saying 'do anything so long as it's not risky.' even if it doesnt make sense.

It makes sense, tons of money is moving more conservative. Boomers are headed into retirement and need to move their money to safety. Except where are they investing it safely? In those bonds that are negative. They are losing money in their investment.

There's also the reality that the boomers have not saved enough in their generation. Many of them are expecting underfunded social programs are going to keep them afloat. That's not going to happen. In many places those retired cant make ends meet and therefore you get silver crime. https://www.telegraph.co.uk/news/2017/11/20/poverty-ageing-j...

So the boomers will raise the money to retire by inflating housing values and the younger generations buy this debt theoretically when they move into those bigger homes. That's not how it will work. It will inevitable result in exactly the same interest rates and inflation like the 70s and 80s during the WW1 boomers.

There is a more basic economic question that I am curious about.

I don't know how / can't believe how in the 1980s we had the era of 15% interest rates, etc (ok, I have some idea, central bank policies, inflation, etc) -- but it seems now we're in a "forever-0%-interest" situation.

The reason I think is that interest/mortgage/etc rates just reflect how much people/banks/etc are willing to receive in profit for parking or lending their money somewhere. This has gone to 0% (almost no profit) because no one can offer good returns on the money. Or the people receiving the money have so many choices that the lenders are forced to compete to 0%. All the VC money sloshing around for free is because there is no more favorable place for that money to find profit and the 1-in-10 (?) shot that startups have is still better odds than average other opportunities.

Right now it seems there is too much money searching for returns. And that money is not somehow just going to disappear over time.

To take the opposite hypothetical, if you consider the accumulated wealth of all countries now, and the relatively low growth of most of them, how could it be possible that all that money could find good investment return rates? Except for isolated pockets of growth, need for investment, where will we find broad returns anything greater than a few %?

So, until something fundamental about the money supply changes, are we in for a long period of pretty much 0% returns?

I would love to know some more sophisticated ways to understand the situation.

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