RE: LeoThread 2025-08-20 14:04
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Interesting perspective, but negative interest rates are a double-edged sword. While they might seem like a free lunch, they're essentially a sign that the economy is struggling.
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Banks are paying you to borrow money because they're desperate for cash flow. If the economy improves, those rates could turn positive, leaving you with a hefty bill.
Plus, investing in a down economy can be risky—you might end up losing more than you gain. It's a gamble, and not everyone has the appetite for it."
There is always an investment that can be profitable in any economic environment. A free loan makes it even easier to profit.
Most of the loans were a fixed negative rate for some period of time so even when rates went back to positive your loan was locked in.
Banks were dumb to offer such rates and most would have gone out of business if Governments didn't back stop them.