Mortgage Loan

CREDIT ECONOMY, YOUR LOANS AND INVESTING





The credit economy is under the influence of interest rates which will lead to future issues and a inevitable recession at some point. I discuss student debt, car loans and mortgages to give some color on the issue and provide investing ideas, or in this case stocks to sell ideas.

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13 comments

  1. Those with the minimalistic lifestyles of today will get the last laugh. Glad we got our home loan for 3% and vehicle for 2.4%. Could pay off the vehicle but decided I would rather put the money on gold/silver miners (SVBL,GDXJ,EXK and 2019-2020 call options on GLD,GDXJ,SLV. Should be interesting to see how it plays out. Glad we do not have student loan debt or credit card debt. It seems to be a huge issue for many here in the US. Great video as usual Sven. I am looking forward to seeing your channel grow. I have been watching a few others since they had under 1k subs and they are now over 100k subs and they are not as good as yours in my opinion. Keep up the good work.

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  2. So in other words TESLA is screwed lol. Mountains of debt and banking on those who put a down payment of 1k for the model 3 to be able to pay the rest

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  3. What about Europe Sven? If interest rates are increased significantly by the ECB, isn't half of the countries going to be bankrupt? I have a -0.329 % interest rate now on my mortgage, which is ridiculous. Is it time to sell and move to a rental apartment? 🙂

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  4. I think credit is a really important, but most people dont see how important the interest rates are. If I would use credit I would only use it for a investmemt and always with the interest rate fixed, I do think risk is a part of growing the capital, but I wouldnt like to risk too much with a money that isnt even mine, so I would only take a debt knowing exactly how much I would pay for every month, otherwise I wouldnt.

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  5. Great Video Sven! In theory the finacial sector should profit from rising rates (effect 1) but at a historically so long low interest rate, i wonder if the increase in non performing loans (effect 2) would not dominate effect 1. What are your thoughts?

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  6. you forgot property taxes and others on the house: 4000 – 5000 $ year U.S.

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  7. Personal contract Purchase is a dept that that most people have no whit about. Pity buy a second hand car and live debt free.

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  8. With higher rates on houses will cause the prices to lower which will offset the higher interest rate on a mortgage eventually like you said. I'd rather get a house that's a 250k at 3.8% at 125k at 5.8% for 30 years

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  9. Youre taking the payments as a % of pre tax income which is not a meaningful #; real income is totally different!

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  10. I'm glad we're down to our final loan (my student loan). Its hard for me to pay it off since its 70k at 2% from 2006. There is nothing anyone could ever sell me again that would make me go into debt again for it. I have the cash to pay off the student loan but the market has done well in the past 8 years. The ROI from college is getting worse every year and I tell my 18 year old patients to look at trade schools/apprenticeships (i.e. electrician, wielder, plumber). Great video btw! Anyone having too much debt reduces our ability to invest.

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  11. The cycle will turn an there will be a deleveraging phase.
    Whether there will be a recession, depends on how the cental banks will react, so far they sem focused on results. The real risk is stagflation or a recession coupled with inflation (oops!).
    Generally if you're investe in good companies at the righ price, you should b able to sail the storm on autopilot.
    The most important difference with the 2008 is that global financial system is well regulated and a lo more resilient (good luck capitalizing on financial turmoil!).

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  12. It looks like nothing was really solved in 2008, just postponed. This won’t have a pretty ending.

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  13. Sven your channel is so good! I learn a lot. Regarding mortgage going down to 256k. Is this number calculated somehow or was it just an example?

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