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Banks And Building Societies Are Awash With Cash And Don't Need Your Money.

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My mortgage is 1.79%, whilst I can get near 5% on Zopa/Rate setter.

How does that work? Even premium bonds come close to that interest rate. A few years ago in 2007 the mortgage was near 7%, savings about 5%.

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My mortgage is 1.79%, whilst I can get near 5% on Zopa/Rate setter.

How does that work? Even premium bonds come close to that interest rate. A few years ago in 2007 the mortgage was near 7%, savings about 5%.

I wouldn't touch peer to peer lending at 10%, let alone 5%.

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Even after a base rate hike the commercial lenders will have little incentive to raise their own rates. They have trillions and trillions of QE cash on deposit with the world's central banks. If QE isn't reversed then commercial rates can continue to decline even as zirp is abandoned.

Edited by zugzwang

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Even after a base rate hike the commercial lenders will have little incentive to raise their own rates. They have trillions and trillions of QE cash on deposit with the world's central banks. If QE isn't reversed then commercial rates can continue to decline even as zirp is abandoned.

they also have $700trillion in derivatives gambling debt that they cannot ever get out of. Because the losers in the zero sum game cannot pay the winners ,because the losers losses on such massive bets render them insolvent. The winners' "assets" are therefore effectively zero, possibly also rendering the "winners" insolvent .

Warren buffett: "derivatives are easy to enter and almost impossible to exit"

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