Oddbean new post about login | logout Morgage rates in Italy continue to fall. They're now at 2.25% 🤔 The EU be like... https://m.primal.net/MjOy.png
In Russia they're over 30%. I kinda prefer Italy. 🤷 But joke aside, why is this bad?
The current system of relying on centralized human judgment to manage interest rates is inherently prone to creating imbalances that drive boom and bust cycles. Satoshi Nakamotos answer to this is: Fix the money, fix the world! If you really want to know how evil the current system is, you need to dive deeper into Austrian Economics. Here is a classic: "Man, Economy, and State by Murray Rothbard": This comprehensive treatise covers the entire body of Austrian economic theory, building from first principles. It's considered a cornerstone of modern Austrian thought. Be prepared for a challenging but rewarding read.
What do lower rates indicate?
That the financial system is fairly disconnected from reality. The banks are propped up by the ECB, hence they can offer super low rates in an environment where inflation of real goods and assets are still climbing much faster. It's obviously great for borrowers. Just make we wonder what debt crisis is looming in the future.
wut? My boomer parents have more than 6% I think. Is it something for young people only?
