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Without leverage and fiat we would all be living in mud huts. Sometimes we need to ignore what's fair and be thankful for the standard of living that we have.
Without leverage and fiat we would all be living in mud huts.
Without leverage and fiat we would all be living in mud huts. Sometimes we need to ignore what's fair and be thankful for the standard of living that we have.
I used to think that lenders do nothing, but actually they do one thing, and it is kind of tricky: they evaluate the probability of getting repaid by the borrower.
But of course when the government guarantees the loan, then the lender does not even have that responsibility. Just has to check some boxes. Taxpayers are on the hook for any default.
I’ve gained so much equity since then that I’m sure I got the best part of that deal.
How did we ever build the Empire State Building before the Federal Reserve?
WineHorror1 saysWhat builds/creates value? Anyone?
guy digging a ditch comes to mind, not banksters
Without leverage and fiat we would all be living in mud huts. Sometimes we need to ignore what's fair and be thankful for the standard of living that we have.
WineHorror1 saysWhat builds/creates value? Anyone?
guy digging a ditch comes to mind, not banksters
You describe something as a sop to a person when they are offered something small or unimportant in order to prevent them from getting angry or causing trouble.
If we had no mortgages at all, and people had to save to pay cash to buy, housing would be a lot cheaper and we would have to work a lot less.
The lender also gets to enjoy a one time jolt in the form of a lending fee PLUS he gets to enjoy monthly wealth accumulation jolts each and every month for the duration of the loan. If it is worked right (and if the mark is dumb enough) the lifespan of the loan may very well extend past the lifespan of the lender which means the lender will enjoy the fruits of the mark’s labor for his entire life.
So, who is it that works and who is it that reaps? The realtor works to land the mark, the mark works because he is a mark, and the lender … the lender does what?
The lender opens up for business and the realtor brings the mark in for some dotted line signing and – presto! – the deed is done. The realtor then goes searching for another mark, the mark goes back to work, and the lender goes to the beach.
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