2008 an inside job?, page-6

Play2Win Asked: "How is this possible? Especially with regards to home ownership?"

Let me try to address your questions.
Firstly, a home can be created, but it can not be purchased. A home is priceless, i.e. it can not be valued using a monetary unit.
A plot of land with a house on it may be purchased, to which a home can be made part of.

With current house+land prices at roughly three to four times more than what they should be, ownership is near impossible for most families. Even a two (average) income family that has borrowed money from a bank to purchase a house will probably never in their working lives be able fully repay the loan: and, thus will never truly own the property.

Hyper-inflation is a symptom of easy money or cheap credit, because it encourages knuckle-heads, whom have no control over their emotions, to bid at house auctions.

"I therefore assume you have never ever borrowed one cent for anything."

I wouldn't say "never", but have not borrowed money for at least twenty five years. The couple of times I did borrow money were probably the biggest financial mistakes I have made in my life.
And, yes, we do own a house and land outright, paid cash for it during the 1991 recession.

"Maybe your employer borrows money to run the business that employs you.

The companies that employ me borrow my services, which they then on sell at a profit for which I receive financial reward.


It's all fine and well to do some "Bank Bashing", but what allows the banks to do what they do ? It's the very people whom use their services that do.
If people could only control their emotions a bit better and adhered more to moral virtues, e.g. practice a bit of temperance, resist temptation, then the GFC would not be happening.

If you want something, then work hard and earn the reward first.