FYI you know how the government keeps saying low rates help poor people, but you're seeing rising inequality?
Well, that's because they're lying. The Dutch central bank found the rich captured 6% more wealth due to low rates.
<thread> 🧵👇
betterdwelling.com/low-interest-r…
Well, that's because they're lying. The Dutch central bank found the rich captured 6% more wealth due to low rates.
<thread> 🧵👇
betterdwelling.com/low-interest-r…
2/ What about cheap housing? Central banks keep saying people can't afford higher rates.
Well, lol. The Bank of Canada's own research shows low rates drive home prices higher. Somehow giving people more credit doesn't lower home prices.
Weird, right?
betterdwelling.com/canadians-are-…
Well, lol. The Bank of Canada's own research shows low rates drive home prices higher. Somehow giving people more credit doesn't lower home prices.
Weird, right?
betterdwelling.com/canadians-are-…
3/ What about QE? Surely that policy, to facilitate greater government spending, will improve the lives of those on the bottom half, right?
*checks notes*
Bank of Canada found it may have increased inequality. Sorry about that, eh.
betterdwelling.com/whoopsie-bank-…
*checks notes*
Bank of Canada found it may have increased inequality. Sorry about that, eh.
betterdwelling.com/whoopsie-bank-…
4/ Okay. But at least it will help pensioners, right?
Shit. It turns out the OECD found it will reduce fixed income impacting things like pensions, and increase the likelihood of gambling from institutions.
Fun fact: You're the replacement for bonds!
oecd.org/finance/financ…
Shit. It turns out the OECD found it will reduce fixed income impacting things like pensions, and increase the likelihood of gambling from institutions.
Fun fact: You're the replacement for bonds!
oecd.org/finance/financ…
5/ This fuckery doesn't make sense, even at its basic level.
What's debt? Future income used today. Low rates help you borrow more.
Now put it together. Low rates help you borrow more of your future income to use today. Does that sound like it'll help? lol.
Why?
What's debt? Future income used today. Low rates help you borrow more.
Now put it together. Low rates help you borrow more of your future income to use today. Does that sound like it'll help? lol.
Why?
6/ Because young people are the exit plan.
As rates fall continually, each generation is given the ability to borrow more years of their future income.
Generations of predators are now playing stupid, and pretending they don't understand how the ponzi system works.
As rates fall continually, each generation is given the ability to borrow more years of their future income.
Generations of predators are now playing stupid, and pretending they don't understand how the ponzi system works.
7/ Except what do you do at this level? Well, Millennials are told to buy minuscule houses for a 25-30 year mortgage, and then upgrade after 10 or so years.
They effectively extended your costs 35 to 45 years, by extending more credit. Here's the problem.
They effectively extended your costs 35 to 45 years, by extending more credit. Here's the problem.
8/ How do you continue a ponzi when debt is hard to extend? They'll try, but it's hard and feels predatory.
There's a carrot though. You're rich!
Sure, your $1 million home looks like a $100,000 home 10 years ago, but you feel like a million bucks, and that's what matters.
There's a carrot though. You're rich!
Sure, your $1 million home looks like a $100,000 home 10 years ago, but you feel like a million bucks, and that's what matters.
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