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Danish bank launches negative interest rate mortgage

theguardian.com

151–152 of 152 posts

Re: Danish bank launches negative interest rate mortgage

#151
post #148

Not the world's first at all. https://tradingeconomics.com/switzerland/interest-rate Switzerland has been negative for years. Negative interest rates mean only 1 thing. The central bank is 100% confident that they are on the brink of deflationary spiral; much like Greece or Japan. This is all connected: https://news.ycombinator.com/item?id=20615403 https://news.ycombinator.com/item?id=20654624 https://tradingeconomic…

> The central bank is 100% confident that they are on the brink of deflationary spiral; much like Greece or Japan. Is this a good thing for people who hold cash assets? Meaning, would you be able to buy say a $40,000 car for $20,000 in case this happens?

That's the problem in Japan. That $40,000 car will be say $38,000 next year; so why would you buy it now?

The problem is that when people do that, it means people arent spending money resulting in more deflation.

Re: Danish bank launches negative interest rate mortgage

#152
post #150
post #38

Earlier quoted context omitted.

In Denmark the rents are not free market so they can't just rise with house prices.

There is no rent control for buildings built after 1993.

There is not strict rent control but that does not mean that the landlord can increase the rent as he sees fit.
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