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Why would I lend you a million dollars only to be paid back over 30 years and have less than I started with at the end of the 30 years? I'd be better off doing
by civilized 5y ago
Why would I lend you a million dollars only to be paid back over 30 years and have less than I started with at the end of the 30 years? I'd be better off doing nothing with the money.
- ytpete 5y agoYou wouldn't, but the government might - to keep the economy propped up. I think this is what parent meant, anyway. Not sure that's a healthy point for the government or the economy to get to, but with politics the way they are these days it doesn't sound that farfetched of an outcome...
- civilized 5y agoIf things get to that point, the government might as well just buy all the housing.
- s1artibartfast 5y agoIt has already been done. https://www.investopedia.com/articles/personal-finance/051415/5-countries-lowest-interest-rates.asp https://www.investopedia.com/articles/personal-finance/05141...
- spywaregorilla 5y agoBecause you don't want to keep 1 million dollars under your mattress.
- civilized 5y agoMaybe I do if my other options are this bad. Although if the reason the government is doing negative interest rates is to prop up home prices forever and ever, I guess I better put my money into housing.