Banks Across Europe Pay Borrowers To Buy Homes!

• Negative interest rates implies that the financial system is busted! Banks make money by making loans for profits. This is the basic economic function of a bank. With the profits, they pay their staff, rent …. and give a return to shareholders. Why would a bank continue lending money when they have to pay borrowers interest instead of collecting interest? The answer is: they would not for long. If they continue on the path of losing money with every loan, they will go bankrupt very soon.
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• From a borrower perspective, if I can borrow money and earn interest instead of paying interest, then the logical thing to do is to borrow even more and thus earn more interest(money). Where then is the need a get a job to earn a living? Why then would businesses invest money, build factories, manufacture products, provide services …. to make a profit? Businesses can make money by just borrowing money from the bank. So why take the risks of starting, maintaining … growing businesses?
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• Negative interest rates implies that the financial system is BUSTED! Negative interest rates will freeze, lock up the global economy. As banks contract their loans sharply, economic activities dry up … it is the end of the current economic world order. A global economic, financial and currency collapse is coming. The sheeple do not understand what is happening. The financial tsunami will come. It is a question of when!
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• Banks Across Europe Pay Borrowers To Buy Homes!
  by Tyler Durden, www.zerohedge.com 
  Back in January we asked the following: “who will be the first to offer a negative rate mortgage?” Soon thereafter we discovered that in fact, this NIRP-inspired aberration already existed in Denmark where Nordea Credit was offering to pay borrowers to purchase a house prompting us to make the following assessment: 
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  And just like that, first in Denmark, and soon everywhere else in Europe, a situation has now emerged where savers who pay the bank to hold their cash courtesy of negative deposit rates, are directly funding the negative interest rate paid to those who wish to take out debt. In fact, the more debt the greater the saver-subsidized windfall.
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  That would turn out to prove rather prescient because as WSJ reports, this bizarre characteristic of the new paranormal is spreading throughout Europe on the back of Mario Draghi’s trillion-euro adventure in debt monetization land.
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  Tumbling interest rates in Europe have put some banks in an inconceivable position: owing money on loans to borrowers.
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  At least one Spanish bank, Bankinter SA, the country’s seventh-largest lender by market value, has been paying some customers interest on mortgages by deducting that amount from the principal the borrower owes.
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  read more!

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