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A comment on The Shock of Sweden's Housing Market Is Hitting the Country's Currency. Parent comment

Re:The Shock of Sweden's Housing Market Is Hitting the Count... by teekert on Wednesday November 15, 2017 @12:01PM (#15705280)
High housing prices are also very nice for banks and benks control nations. Essentially all mortgage money is created as dept. Banks can simply say: Here you go ma'am/sir, here is your money, created out of thin air. Now, please sign here to pay for your house twice, 1 time to the original owner and 1 time to us, because we created this money for you out of thin air.
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Re:The Shock of Sweden's Housing Market Is Hitting the Count... by mnm2 on Wednesday November 15, 2017 @12:04PM (#15705319)
Yes and no: The bank wants 2% as interests, but inflation is 3%

--> The Bank effectively loses money

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Re:The Shock of Sweden's Housing Market Is Hitting the Count... by icebraining on Wednesday November 15, 2017 @03:07PM (#15707283)
Isn't that only true for fixed-rate mortgages? At least around here, almost all are variable-rate, so they rise with inflation.

I think banks only really lose money on defaults, and that's if the house lost value.

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Re:The Shock of Sweden's Housing Market Is Hitting the Count... by yellowbeard on Wednesday November 15, 2017 @05:03PM (#15708281)
The bank only has to have a very small percentage of the money they loan you. Most of it is created at the time of the loan.
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Re:The Shock of Sweden's Housing Market Is Hitting the Count... by teekert on Thursday November 16, 2017 @11:50AM (#15714170)
Exactly, the bank is not hurt from money devaluating when they don't have to do anything for it but create a dept in their books. Sure, what you will pay them will be less in 20 years but it more than the nothing they had before...
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