Thursday , September 23 2021
Home / Video / Why rates may go to zero or even negative.

Why rates may go to zero or even negative.

Summary:
I said this back in April. Don't fight the monopolist--the Fed.

Topics:
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I said this back in April. Don't fight the monopolist--the Fed.
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

23 comments

  1. So 1% mortgage rates coming? How can lenders profit well?

    If so housing prices can double.

    • @patreon(SLACNetwork) U believe so

    • patreon(SLACNetwork)

      @Cyrus992 yes i would believe so

    • @Cyrus992 Ask yourself one question: did all lending cease during previous low interest rates? If the answer is no then profits are there to be made. Otherwise, no lending would've occurred. I named like 4 or 5 different methods by which they still earn profits. Rememeber: if the rate is 1% then you still paying a few percent more than that in origination fee.

    • @Will Finn I know but the profiting is overall less. Plus it is different if they are selling new homes because they need the return on those new materials faster.

      There was a time where a 5% mortgage rate created a buying frenzy. Now if it goes to 5% now, the market implodes. So therefore there will be a time where 1% can no longer create a boom after a while. Therefore we have hit our limit. Sadly that process is what is propping our economy.

    • @Cyrus992 [Citation Needed]

  2. Since 2009 I have noticed that the Fed tells us what they are going to do in advance. It's when we think we are smarter than the fed we lose money

    • The fed is not smart. They just have control of the economy. They are a elite group of thugs that we let control our money.

  3. So this is deflationary. Why would markets rally in a deflationary period?

    • Same reason it did for the last several years 🤔🤷🏼‍♂️

    • @Cyrus992 Understand this: lower rates = lower discount rates. Stocks are a reflection of future discounted corp profits. Lower discount rates = higher present value. The only ones screaming rates hikes are cwacks with no understanding whatsoever.

    • AmazianLinsation82

      Because professional investors have to put money to work. They are not just gonna magically quit their jobs and disappear. Change might come when the Buffets, Drunkenmiller and Dalios of the world ride off the sunsets and a new breeds come in – finger crossed

    • @Atem I see.

  4. I have to say he was right on thursday

  5. mohamed el erian should subscribe to your MMT trader he could learn a lot

  6. Finance & Economics

    I'll have to see it to believe it.

    https://youtu.be/CuewlXqCqg8

  7. Rehan Ahmed Khan

    You are genius Sir. Hats off to your call on 28th April when everyone was concerned about inflation and rates.

  8. As Mosler said zirp zero interest rate policy

  9. JP was really against it, but if economy goes down after unemployment bonus ends and Biden shoves through the 6 trillion. It could be possible. They will do anything to keep prices up. Think they are also saving the 15k first time home buyers for just in case.

  10. If you want to learn a plethora of great information, just binge watch or listen to Mike's past months videos. I do just to ensure I am on top of the weekly MMT Reports and daily emails without missing any details. Which is important if you want to learn this valuable skill. Get it while you can!!!

  11. After being an MMT Trader for a little more than a year, I can honestly say that my whole life has improved as well as my portfolio. So much so, that my portfolio is no longer priority 1. Now, that's living!!! What's in your inbox?

  12. I’m surprised the gold community hasn’t caught on and embraced what you just said. “The natural rate of interest is Zero”. It’s 100% correct.

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