Tag Archives: mortgage

What you should know about negative real interest rates

How negative real rates distort everything Normally a mortgage is a liability. And bonds are a low risk, low return asset. However when real interest rates are negative you can throw these conventional concepts out the window. The graph below shows the difference between a government bond yield and inflation (CPI.) The economy experiences negative real rates when… Read More »

How I obtained a negative interest rate mortgage

Why inflation matters U.S. government bonds in 1990 were paying investors 8% a year. That sounds amazing! Especially for a low risk investment. 🙂 But not everyone was buying them. Why? Because investment returns don’t tell the whole story. The inflation rate that year was 5.4%. That means the real rate of return on those bonds was only… Read More »

Don’t Let Debt Make You Sick

The Effects of Debt on Your Health According to a Globe and Mail article I recently read, people have gotten sick and depressed thinking about their debts. “Researchers and health professionals are making the case for treating personal debt as a public health problem.” Oh no. 🙁 Dr. Donna Ferguson, a psychologist in Toronto says, “I think that it’s a major crisis.… Read More »