Mortgage Rates

How Detrimental Interest Premiums Operate (And What They Would Signify for the Economic climate)





U.S. President Donald Trump has suggested the Federal Reserve should provide fascination fees underneath zero…but what does that even imply? Will you be paid for using out a mortgage? We’ll remedy these queries and far more.

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This channel is for training applications only and is not affiliated with any financial institution. Richard Coffin is not registered to give financial commitment suggestions and as these kinds of does not give recommendations on The Plain Bagel – all those on the lookout for financial commitment suggestions should search for out a registered expert. Richard is not liable for financial commitment steps taken by viewers.

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50 comments

  1. Happy Friday everyone! Do you think the U.S. will adopt negative rates? Is this something you look forward to, or fear? Let me know!

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  2. In for a disaster 🤔 ! And debt more than it is . It’s currently going on 200 trillion world wide . If you put up the interest rates the system would collapse. The fed printed 500 billion last week and are currently printing. The world runs on debt .

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  3. Will banks pay you for taking out a loan? Of course not. Banks aren't there to pay you but themselves!

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  4. this destroyed japans economy, and it will collapse the financial system. You should buy gold and silver right now.

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  5. Credit expansion causes business cycles

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  6. Like the saying goes, it’s “stagnation” if you’re a corporate banker and “stability” if you’re a normal citizen.

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  7. When taking the new "fee" I pay at my local bank I am paying 1% negative interest rate at my local bank. Its the Sparkasse in germany. Older people need to pay even more – they pay 2-3% negative interest to the Sparkasse. Thats really cruel. They invented a lot of fees to suck out money – and their balance sheet looks great. Rising winnings even with negative interest rates. For example they make a lot of money with real estate, up to 5% commision what they require you to be paid.

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  8. “Monetary policy can only do so much”, “there is no free lunch in economics”, “negative rates is a desperate tool”… and yet no signals of an incoming crisis are observed? How in the world were the current ATH asset prices and debt levels reached, if not by artificially low interest rates?
    Negative rates are desperate, but it's not like slightly positive rates, kept artificially low by almost a decade of QE and expansive monetary policy is healthy either. If the economy is so strong, then why if the Fed dares to rise rates, the financial world and stock markets panics?

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  9. Negative interest rates means that are money is so worthless that we have to pay you to use it.

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  10. "No free lunch" is the very key phrase. The US is a different economy than any other in the world. You can buy a can of Coke anywhere in the world with a US dollar bill, true story!

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  11. U don't see the big picture, because China, Japan and other countries lend lot money to the US, US don't want to pay them interests because you are basically working for them as their slaves. So put the interests rate in negative the US actually leeching on its lenders.

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  12. Welcome to Sweden (neighbor of Denmark). We also have negative interest rate and we definately have a housing bubble. Our socialist government goes head first into heavy expansive spending for the country while we are heading towards a recession. Our currency has lost about 30% of its value compared to "normal" levels.

    Select members of our government, and their allies in the former communist party, regulairly puts Venezuela as a great example of how a country should be run. If critizied for this, the blame is always capitalism and the market price for oil. Not the spendocracy and robbing mentality of the government…

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  13. Like your Videos so much its Realty educational related in economics

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  14. I love how at the end he lies about the facts, claims there is no risk of a crisis and then admits to the inevitable outcome which will topple the us government and way of life.. and refers to it as a “disaster.”

    You bet your ass, and like the earth rotating towards the sun to bring each day, you bet your dumb Keynesian asses it’s coming.

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  15. Don’t use banks if you can avoid it. Don’t keep cash in bank accounts. Take as much cash as you can out of the system.

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  16. Oh no. Encouraging saving in a consumer driven “economy”. What witchcraft heresay is this???

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  17. Negative yields are a short term fix to a long term issue

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  18. First comes deflation, the central banks react too late and due to money printing follows Inflation.

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  19. Why can’t people just take the risk and put $100 bills under their mattress

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  20. it would be a great incentive to invest in gold backed currency

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  21. Dan Pena is right, this is the greatest wealth transfer in the world

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  22. Nah negative rates may sort of work short term if they don't go past minus1% as banks can make profits out of fees etc but that is about it .
    Negative rates are like trying to defy gravity.It will always end in a crippling fall.
    There is NO sense in negative interest rates it is just a sign a massive recession is on the horizon.

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  23. I really appreciate you!

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  24. Wait. Where is my cream cheese at? 🙁

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  25. buy gold.

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  26. I don't buy it,. The bank will screw you Other ways They will find ways to screw you ,. Believe me.

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  27. If inflation goes negative, would returning to a gold standard be logical?

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  28. that shit is going to be our next economic coffin.

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  29. If banks lower savings accounts to negative interest rates that'll drain BILLIONS out of the economy and mostly from the worker/consumer class. This will devastate the economy. This could force the interest rates to go all the way down to negative double figures.

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  30. Great job!

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  31. Negative rates means you buy metals to protect yourself. Dont hold cash then

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  32. We owe debts to banks. But who is the bank owe their money to ?

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  33. Is love to see you cover modern monataty polocy as well as floating exchange vs fixed!!

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  34. because bad assets aren't cleaned trough normal market function, and while developing companies can't nock off the old, there is a huge overproduction, causing deflation, along with inflation, it sort of cancels each other out. Both companies, the old and new are going broke at the same time, neither is allowed to win. And with negative interest rates, it will become very hard to see who should win. Courts might get involved, markets will not know where to go, causing huge Instabilities, and large investment mistakes. That could cause more consolidation in all industries, not based on quality and efficiency but on who is the nice guy, founders of companies will find them self employed, instead of owner, with large salaries, while their companies keep bleeding money. Returning nothing but a steady stream of losses to their shareholders.

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  35. Helicopter money lads
    Helicopter money to the rescue

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  36. 😎

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  37. This is huge for cryptocurrencies adoption!

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  38. SCAM, FRAUD and CRIMINAL!!!

    When would the "negative rates" end??????

    I'll tell ya, when they have -100% rates, and you own NOTHING!!!!!!

    SLAVES, SHEEPLE scared of STANDING UP!!!!

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  39. I think negative rates are the death knell of a sick economic system. Delay as much as you want but the scenario you are describing here represents the death of the value of your money and an inevitable economic "reset". A debt jubilee is needed because there is no way to pay it back. Better to default now and everyone suffers a lost decade than to pass it on to your children.

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  40. Everyone, play the video at .75x speed, thank me later

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  41. This is top content!!! Keep going I love your videos. Thank you

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  42. The next recession the European Central Bank will have to lower interests rates even further below 0, it'll be interesting to see how the economy copes.

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  43. – We human beings do not know what's really going on anywhere, ever.

    – The government, and its arrogance, thinks it can figure everything out.

    – The government takes its arrogance and sticks its nose into everything.

    – Whatever the government touches dies

    Therefore, negative interest rates will destroy everything because it's a brainchild – "brainchild" – of the government.

    The free market, on the other hand, generally tends to figure everything out in the long run.

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  44. The dead beat debtor gets rewarded and the saver gets punished. It is a moral crisis, a clear statement that human work and time has no value or negative value. Standards of due diligence will go out the window as investors seeking yield will jump into private equity scams championed by the dead beat debtors. It is a shit show that will destroy integrity and lead to greater poverty as property prices soar and rents go through the roof. Hoarding of physical goods will emerge as the dead beat debtors use free money to buy the physical goods we need to survive. To be unethical will be revered.

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  45. I still don't understand how we as homogeneous group of people could pay back the debt, if the Fed has no other alternative than to lower rate, can someone please explain that to me?
    As in old saying, No human individual in debt is free.

    We the own the system not the other way around the system owns us, correct right?

    1. we are in for the biggest scam in history

    Or

    2. We are participating in sadistic process that will continue enslave human in the future to a system

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  46. China gave the US the rope to hang ourselves and we gladly took it because we're short-term/short-sighted.

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  47. Theft, it's called theft

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  48. American savers have been dealing with a negative interest due to inflation. For example, having a rural bank cash deposit at 1% effectively means that at the time of maturity the investor is losing 1% of overall monetary value due to 2% inflation.

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  49. Subscribed

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  50. Negative interest rates in US will destroy the banking system; as we currently see in Europe.

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