There is always a hard limit on any housing market, and that is the maximum amount of money a homebuyer can borrow for a mortgage. Now the lower the interest rate, the higher the house price you can carry for the same monthly payment. As interest rates embark on a broad downward trend, resulting in House prices rising faster than incomes. The Central Banks faced with signs of a global economic slowdown, are once again using low-interest rates and buying debt to juice up the global financial system. The U.S. Federal Reserve already cut its overnight lending rate. This is the first time since the financial crisis of 2008 that the Fed has cut rates. In this competitive mortgage market, if a bank can make money offering a negative interest rate to borrowers, it will. And voila, here’s your model for juicing the economy right into the bizarro world. While it may seem illogical for a bank to pay you to borrow money, the central banks may see themselves as having no other alternative. It’s either that or they will have to let the debt-laden economy collapse without intervention. And for mortgage lenders, a profit margin is a profit margin. Whichever way, you make it. So there you have it. Expect a future in which the banks will make money by paying you to take a mortgage, and where you can make your debt easier to handle by taking on more debt.All this while the central banks are constantly printing more and more money. This cheap money flooding into the housing market means we are nearing the end of the road for the current housing boom. It is a cheap money loan to fuel this housing bubble, which is really starting to verge on a ‘hyper-bubble’ as we see in the stock market today.
In this video we will show you 50 signs of the imminent economic collapse: