Are you alarmed by the Central banks that are proposing what is called "Negative Interest Rates" and what this means to the real, "state of the economy" and your money?

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Winston Heverly, GRI, ABR, SFR, CDPE, CIAS, PA (Coldwell Banker Access Realty)

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Rainmaker
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Winston Heverly

Coldwell Banker Access Realty - South Macon, GA

GRI, ABR, SFR, CDPE, CIAS, PA

There are danger signs all around us, don't put your head in the sand like the last folks did in 2007-2008. This next time is going to be much more painful, for the economy which never has recovered only propped up temporally.

Oct 13, 2015 11:58 AM

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Mike McNulty

Ottawa, ON

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Tammy Lankford,

Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA

Broker GA Lake Sinclair/Eatonton/Milledgeville

It's beyond alarming and I predict future disaster from it.

Oct 13, 2015 09:57 AM

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Mike McNulty

Ottawa, ON

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Bob Crane

Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI

Forestland Experts! 715-204-9671

Proposing and achieving are often not the same.

Oct 31, 2018 10:44 AM

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Rainmaker
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Gary Coles (International Referrals)

Venture Realty International - Las Vegas, NV

Latin America Real Estate

I am in Mexico and have missed the information on it -- so I will be looking it up. Thanks for bringing it to my attention.

Oct 13, 2015 02:32 PM

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Rainer
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Mike McNulty

Norada - Ottawa, ON

Mobile CRM for Realtors

Great question Winston! Yes, I think everyone should be concerned including realtors. Negative interest rates pose all sorts of moral hazzard including mal-intestment and over consumption. You risk hyperinflation starting with bubbles in the markets like real estate where the credit flows first. Low interest rates are already diluting your savings so retirees can't live on their pensions. The Fed wants to keep rates low because the US gov owes too much money that if rates went up they couldn't roll over their debt and wouldn't be able to service their loans.

Expect another housing and banking crisis at best. Wait till the Federal Reserve tries to unwind its balance sheet and has to get rid of all the morgages they have been buying up during QE3. Not to mention all the damage it has been doing to the economy. If they keep it up, I'd be afraid of the dollar failing. Interest rates should be going in the other direction even though it means that the economy will contract and will have to reorganize. Ideally interest rates should be decided through free markets and price discovery between lenders and borrowers. Nobody in their right mind would buy an investment guranteed to lose value. I'd love to hear what people think of this and would be happy to explain or backup anythings I've said.

Oct 13, 2015 01:57 AM

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Rainmaker
1,574,666

Gary L. Waters Broker Associate, Bucci Realty

Bucci Realty, Inc. - Melbourne, FL

Eighteen Years Experience in Brevard County

While it does seem strange I don't see it as a major issue. Of course, from what I understand, why put money in a bank when under the mattress is free?

Oct 13, 2015 01:40 AM

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Rainer
231,224

Mike Rock

Complete Design - Granite Bay, CA

Granite Bay Luxury New Construction...For Less

IT IS A FREE enterprise still... not for long if the powers at be have their way, so no. not really. if we had let the big banks too big to fail work its way thru the nature of the economy, stupid ideas like this wouldnt rise up. as the peeps would see the stupidity of it

Oct 13, 2015 01:15 AM

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Rainmaker
921,504

Annette Lawrence , Palm Harbor, FL 727-420-4041

ReMax Realtec Group - Palm Harbor, FL

Making FLORIDA Real Estate EZ

No, that does not alarm me.

There are bigger battles that need to be fought.

The bigger question would be, if, sometime in the future, your preferred lender suggested this product to your buyer, would you refer that lender again?

Oct 13, 2015 12:26 AM

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Rainmaker
1,712,776

Joe Pryor

The Virtual Real Estate Team - Oklahoma City, OK

REALTOR® - Oklahoma Investment Properties

Not sure what you are referring to but I think you are talking about negative amortization loans which were stupid in the Volker years as well as the the 2000's which led to a lot of foreclosures.

Oct 13, 2015 12:05 AM

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There are danger signs all around us, don't put your head in the sand like the last folks did in 2007-2008. This next time is going to be much more painful, for the economy which never has recovered only propped up temporally.
I am in Mexico and have missed the information on it -- so I will be looking it up. Thanks for bringing it to my attention.
Great question Winston! Yes, I think everyone should be concerned including realtors. Negative interest rates pose all sorts of moral hazzard including mal-intestment and over consumption. You risk hyperinflation starting with bubbles in the markets like real estate where the credit flows first. Low interest rates are already diluting your savings so retirees can't live on their pensions. The Fed wants to keep rates low because the US gov owes too much money that if rates went up they couldn't roll over their debt and wouldn't be able to service their loans.

Expect another housing and banking crisis at best. Wait till the Federal Reserve tries to unwind its balance sheet and has to get rid of all the morgages they have been buying up during QE3. Not to mention all the damage it has been doing to the economy. If they keep it up, I'd be afraid of the dollar failing. Interest rates should be going in the other direction even though it means that the economy will contract and will have to reorganize. Ideally interest rates should be decided through free markets and price discovery between lenders and borrowers. Nobody in their right mind would buy an investment guranteed to lose value. I'd love to hear what people think of this and would be happy to explain or backup anythings I've said.
While it does seem strange I don't see it as a major issue. Of course, from what I understand, why put money in a bank when under the mattress is free?
IT IS A FREE enterprise still... not for long if the powers at be have their way, so no. not really. if we had let the big banks too big to fail work its way thru the nature of the economy, stupid ideas like this wouldnt rise up. as the peeps would see the stupidity of it
No, that does not alarm me.

There are bigger battles that need to be fought.

The bigger question would be, if, sometime in the future, your preferred lender suggested this product to your buyer, would you refer that lender again?
Not sure what you are referring to but I think you are talking about negative amortization loans which were stupid in the Volker years as well as the the 2000's which led to a lot of foreclosures.