Situation in the real estate market... madness

The low-interest loan is a solution for the individual to compensate for the increased prices. Cheap money, on the other hand, drives prices up and is thus a fueling part of the spiral. Whether this is the right path for our society I dare to doubt.

The cheap loan is a solution for the individual to compensate for the increased prices.
Cheap money, on the other hand, drives prices up and is thus a fueling part of the spiral.
Whether this is the right path for our society, I dare to doubt.

I don’t just dare to doubt that, this is the beginning of the end of the euro. The ECB is leading the currency into an even greater crisis with every year of its existence. The euro should have been dismantled already during the Greek crisis. Now we are all just suffering from the failed construct of some powerful gentlemen, and I HOPE it remains peaceful in Europe nonetheless.

In the medium term, we will see negative interest rates in the range of -3 to -7%. Also on private assets from the very first euro. What this will do to the real estate bubble is better not imagined...

I observe that people who see meaning in consumption (for whatever reason) have a hard time with people for whom consumption means less.

But the consumption addicts will soon learn that banks prefer those customers who make valuable debts.

But when I look around the neighborhood here, most drive SUVs, Tourans, VW buses or station wagons.

I am pleasure-oriented but largely consumption-averse; an SUV would be pretty much the last thing I would consider. Nevertheless, I am seriously considering that my next vehicle might be an SUV – because the other side of the coin of not valuing a car as a status symbol is that it gives you the freedom – simply because you don’t care about the car – to sometimes buy one that can make a statement (namely against the ideological terror that some “fellow human beings” presume to dictate to their neighbor which car is to be considered politically incorrect). If my next car isn’t an SUV, then it will probably at least be a VW diesel.

Those who live on Miracoli and supermarket sausage with toast certainly have great potential to save here.

At least they save a considerable part of their retirement provision (but should increase the one for long-term care).

In the medium term, we will see negative interest rates ranging from -3 to -7%. Also on private wealth from the very first euro. What this will do to the real estate bubble is better left to the imagination...

How do you know that?

Where do you know that from?

Feel free to google Marc Friedrich and Matthias Weik. And no, I don't agree with them on every point, but my personal analyses go in a similar direction.

Permanent negative interest rates were only nonsense for the banking industry as long as there was a gold standard. However, that is long history - apparent contradictions can be explained that easily.