Negative Interest rates.

[ZenOps]

So... The big media refuses to talk about the $15 Trillion worth of 10 to 30 year bonds sold at negative interest rates to the "strong hands" big entities that tend to be much more in the know that the individual. Mostly in Europe too.

I'm thinking its nickels time.

[Xtrema]

https://www.moneysense.ca/save/investing/what-are-negative-interest-rates-explainer/

Big media has been covering this but it just got buried if you don't filter out the noise.

[ZenOps]

The situation where they pay you to take out a mortgage probably would shock most. But it is a realistic scenario given the current Bizzarro world economic stance.

[JRSC00LUDE]

I'm thinking .

This. This right here is where it starts to go off the rails Zenny. We gotta get you a hobby. I mean, a new one! ;)

[ZenOps]

sLWulVrQvsY

[davidI]

^ Good video.

The only thing I would critique is his statement that people will never be paid to take on debt - there are instances of that happening in Denmark and other countries based on variable rate loans that are now negative.

Negative interest rates have already caused some serious market distortions in Europe. Rents are increasing very quickly in Spain and I attribute it to the cheap cost of mortgaging properties these days. It's a messed up world when debtors are rewarded and savers are punished.

[ZenOps]

I've always likened borrowing to game theory. You have savers and spenders, same as hawks and doves. If everyone is a saver, its bad. If everyone is a spender, its bad.

Interest rates are simply the mechanism that brings spenders and savers into equilibrium. Everyone from the boomer generation just assumed that there would be perpetual growth forever (too many hawks). The natural place for interest rates to be might actually be negative, which is an outright foreign idea - but Japan is pretty much full onboard with the idea.

I see the "distortions" as a return to free economies. People will pay what they think its worth, sellers can raise prices to see if anyone "bites" - a return to *somewhat brutal* capitalism by todays standards. Putting a life savings in a bank at 18% interest (1960's) ultimately rewards laziness.

[ZenOps]

https://www.thebalance.com/current-federal-reserve-interest-rates-4770718

"The Oct. 30 cut was the third rate drop in 2019"

Consecutive .25% interest rate drops in this current economic climate is enough to make me think there is a fundamental shift back towards the big R. If the US decides to go negative (which I think would be a very bad idea because the USA is built on "dreams" compared to other nations) it is on track for 2021.

[Kobe]

I've always likened borrowing to game theory. You have savers and spenders, same as hawks and doves. If everyone is a saver, its bad. If everyone is a spender, its bad.

Interest rates are simply the mechanism that brings spenders and savers into equilibrium. Everyone from the boomer generation just assumed that there would be perpetual growth forever (too many hawks). The natural place for interest rates to be might actually be negative, which is an outright foreign idea - but Japan is pretty much full onboard with the idea.

I see the "distortions" as a return to free economies. People will pay what they think its worth, sellers can raise prices to see if anyone "bites" - a return to *somewhat brutal* capitalism by todays standards. Putting a life savings in a bank at 18% interest (1960's) ultimately rewards laziness.

You sir need to go study some PIO ( https://www.piosolver.com/ ) for poker! you get it! We need to be balanced and have savings and spending's in our economic range so the government has no idea what our next move is!

We can spend money on products because we have savings...
But we can also just save money and don't need to spend it...

Or we can simplify it with Nash Equilibrium ( https://www.holdemresources.net/hune ) and

Spend only when we have X amount
Save only when we have X amount

GTO FTW! Let's be more balanced!