>Why do banks lend out mortgages for 4% interest rate when

8% is risky. They can legally murder you if they don't get their 4%.

The loan is backed by an asset that they can take. Almost risk free for them.

>>2754199
Yeah. Fuck it. Just have everyone put money into mutual funds that are only invested in other mutual funds forming a closed loop. While we're at it, let's stop producing anything and just arbitrarily print money and release bogus reports on GDP because why the fuck not?

>>2754199
Market indexes include real estate

Its an opportunity to make money and kind of a safe one since they can reposses a tangible asset

8% return over time , not year over year endlessly - averaged

But don't they? They hedge their bets and diversify.

>>2754231

Nice try Bernanke

>>2754199
>market indexes and get 8%

why stop there? why not just invest it all in crypto?

>>2754247

Why not invest it all in tulips?

File: 1488233957893.jpg (43KB, 640x480px) Image search: [Google]

43KB, 640x480px

>>2754231
So you're telling me they're doing it for the good of the world and for the health of the economy anon?

Pic related

>>2754258
they're doing it because market indexes are not guaranteed anything, they can go up, down, sideways, or crash. montage loans are a guaranteed 4%, no matter what.

bc they have a reserve ratio, and can lend out money they dont have. this is banking 101

>>2754254
Kek

>>2754199
They can just take someone else's cash and lend it out ten fucking times over. Fractional reserve banking is a fucking sweet deal. Can't just gamble everyone's cash away, or they won't have anything to give back to people if the market crashes. But loans are A-OK for some reason.

>>2754228

/thread

Banks are almost guaranteed to win. Especially now that loans have gotten so strict.

>>2754222
>legally
>murder

>>2754199
I thought banks these days flipped the majority to fannie to be put in agency mbs collecting a sweet fee and getting it off their books, essentially acting as nothing more than a sales front for a behemoth centralized too big to fail taxpayer subsidized housing system. But I don't actually know this it's just my instinct

>>2754258
they get to borrow unlimited money at like 0.01% interest . lending at 4% with collateral is fantastic for them . literally just sit on your hiney and collect free houses.

fuck me OP is a dense cunt

>>2754448
>what is war?

>>2754231
>he thinks stocks are a Ponzi scheme
>he doesn't realize that stocks are an ownership of a company that sells products and makes profit
>he doesn't realize if everyone put money into the stock market, the price would get bid up so high that no one would make money
>he doesn't realize that the returns on the stock market reflect risk