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by hammock
2085 days ago
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>it theoretically makes sense to level entire mountains just to create more farmland or to build slightly faster highways because it will pay back over hundreds of years Is that not what we are doing, in the US and elsewhere? Creating massive debt, the proceeds from which are plowed into real estate development via cheap loans, infrastructure stimulus bills, etc. |
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It's much worse in some places than in the US. For example the Swiss 50 year bond is currently priced at -0.36%, and this is "high" given recent yields history. Switzerland is already buying nearly every financial asset it can with printed money, including US stocks, but the credit markets don't give a damn. Swiss mortgages have theoretically infinite duration (you never pay it back by design). Austria has some extremely low yielding 100 year bonds despite not having existed yet for 100 years (in the current form). The deflation is just too strong.