if you buy something -especially expensive things like house, land, car etc..- with loan you can save money . Coz everyone tend to trifle away their money .
With loan? Haha that is a nice shill for the banksters.
The premium thata bank earns on loan usually is more than 200%. If you buy a 20.000€ house you usually have to pay back like 60.000€ after 20 years.
It's a bit sad that you would want to give away that much, the inflation will not be bigger than the interest you pay, so you pay way too much that way.
For a house, it'd be near impossible for most to buy without a mortgage. HOWEVER, that should not prevent you from coming up with as big a down payment as possible. If you can't save 20% for that...you may want to reconsider buying a house. Nothing is cheap when it comes to house repairs, even if you can DIY...
As for cars? Psssh, I've never financed any vehicle (car, motorcycle, etc) and never will. Again, a cash reserve GREATLY helps when car shopping. There are always deals to be found from people who are looking for cash
I`m an economist i understand that the immediate value or goods is preferable to a later one. Especially if the economy is inflationary.
But still the banksters earn way too much premium.
Think of this:
For a 20.000€ loan for 5 years on 1% interest you should pay in total: 21,020 € as / interest + perhaps 1% extra comission so that the bank should profit. So in total about: 21,220€. If the inflation is below the interest rate, about 0.5%, then the bank doesnt lose money and you are better off.
However in reality, you pay about 30000 € atleast + some down payment.
So either the government inflation number is not ok ( like when did the government told the truth, the inflation is about 8%) or the banks are over the top greedy.
Perhaps the combination of both.
I think you should reconsider how a bank is able to give out a loan; simply they can create money. Do you think all the money they lend out is from people who put their money in the bank? No. This balance is never 100% and it never will be, although this rate have been increased in many countries since the crisis. Do you know what will happen if everyone takes out their money of a bank? Bankrun!
A bank will loan out 20.000 by simply "creating it" in their systems --> and transfering it to your bankacccount. What they get in return, is a monthly amount of REAL money. What did they have to do for that? Not much. It's just not as easy as meeting the inflation rate.
That only shows a bigger amount of greed. Because they not just calculate in the inflation / time value + they put on an arbitrary comission , but it's more funny that they dont even lend out their own money.
So they calculate all that, like they would if they would lend out investors money, when in fact they just lend out printed money.
Yes it's hilarious, but what do you want, until this fractional ponzi scheme persists, we have nothing else.
0% reserves and -0.75% interest rate it's just the tipping point of GREED!
