View Single Post
  #4 (permalink)  
Old 09-22-2011, 06:43 PM
rkg000 rkg000 is offline
Donor
Priority Date
:
Jun-06
Category
:
EB2
I140 Mailed Date
:
Chargeability
:
India
Processing Stage
:
I-485
I485 Mailed Date
:
Compare
Join Date: Jul 2007
Posts: 118
rkg000 has a reputation beyond repute rkg000 has a reputation beyond repute rkg000 has a reputation beyond repute rkg000 has a reputation beyond repute rkg000 has a reputation beyond repute rkg000 has a reputation beyond repute rkg000 has a reputation beyond repute rkg000 has a reputation beyond repute rkg000 has a reputation beyond repute rkg000 has a reputation beyond repute rkg000 has a reputation beyond repute
Default In the Grand Scheme of things was this mess to create new money

Quote:
Originally Posted by abqguy View Post
In the article, an interesting point was that the borrowers were paying their debts instead of spending.

That got me thinking as to where the money originated and where is it going. For example a house worth $100 in 2003 is worth $1000 in 2006. So a bank would have to lend $1000 for someone to buy that house and then investors or government would have to lend that $1000 to bank to make the loan. If the price increase was on par with rise in inflation then the gains for the creditors are just the interest on money. But since the House price fell back to $200, the creditors or money creators are enjoying an extra $800 for which home owner is on hook. Who exactly is enjoying the extra $800 and the interest on it while the inflation adjusted increase was just $100 from 2003 - 2006.
Bookmark and Share Compare Reply With Quote