Fair, although that may not be a perspective shared by Gen Z who have bog-all in the way of pension. Everything's relative.Sandydragon wrote: ↑Sat Aug 19, 2023 3:29 pmPension investments benefits not just rich people.Puja wrote: ↑Sat Aug 19, 2023 2:17 pmSort of. It depends who the banks are borrowing from, cause "the markets" is a nebulous bullshit term. If it's imaginary money created by the central bank, then yes, it's all fictional. However, it may be from hedge funds/pensions/investors, in which case it's good news for rich people as they're getting better returns from their investments. In theory, that results in more supply of money to the banks (because more people/entities are interested in investing in lending to them), which reduces the amount that they have to pay to borrow (called "swap rates"), which then reduces the mortgage rates, as mortgage lenders start competing for your business. But there's a lot of opportunities for this not to be passed onto the average Joe, or at least not immediately.canta_brian wrote: ↑Sat Aug 19, 2023 12:36 pm
Ok cool. So the extra money paid by the mortgagee simply ceases to exist. It’s paid to the bank but is of no value because the value of zero has effectively been increased.
Puja
Puja