|
|
|
|
|
|
by incrudible
1995 days ago
|
|
|
It's in fact more profitable to lend at 0%, because of negative interest at the central banks, negative interest for government bonds and even negative interest for certain corporate bonds. Combined with the immense cost of hoarding massive amounts of physical cash, there aren't many options left. While a corporate bond can go sour and a government bond may well be legally wiped out, a mortgage is at least collateralized with the property. Assuming that that the negative interest rate regime continues - which it most likely will - property prices will be driven up even further. Even if the mortgage goes into default, the repossessed property may end up being worth even more at that point. |
|
|