3 ms·
Government gets an indirect property tax in the form of mortgage interest. Maybe less awkward than the central bank owning its own debt. The people get a lever
by naveen99 4y ago
Government gets an indirect property tax in the form of mortgage interest. Maybe less awkward than the central bank owning its own debt. The people get a leveraged inflation hedge. but it seems to be going in the opposite direction making inflation worse.
- dave4420 4y agoI don’t understand how the government gets a property tax: the mortgage interest goes to the bank, not the government. What am I missing?
- naveen99 4y agoBanks aren’t going to keep 50 year fixed mortgages on their books, unless they are like 8+%. British and European people expect mortgage rates closer to 0-2%. Only government can finance that (with pseudo tax in the form of mortgage interest).
- dave4420 4y agoI don’t believe we have anything like the American Fannie Mae / Freddie Mac in the UK.