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If the fact that the bank does not loan anybody anything and has no ability to create anything itself isn't enough to deem it a scam then I don't know what is. Do you deny that a "loan" is nothing more than a bank issuing someone their own credit?
"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." - Henry Ford
And I answered your question. You then deflected, added a side of ad hominem, and are now scurrying out of the thread before you show further ignorance or worse.
Here's the secret. Banks don't loan money. They issue you your own credit and then charge you for it. Credit that does not and can not exist without you to guarantee it into existence. A bank isn't a building, isn't an institution. It's a piece of paper and pieces of paper can not create anything and can not loan you anything. It is delusion to think otherwise.
Last edited by devil21; 07-30-2017 at 02:00 AM.
"Let it not be said that we did nothing."-Ron Paul
"We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book
They usually appreciate. Except when they don't. Stocks usually go up. Except when they don't.
Owning a home and hoping it appreciates, and hoping the local government does not re-evaluate your fair tax burden after you have retire and hoping the local government does not bleed the coffers dry and hoping that those in power do not let your neighborhood go to $#@!, yeah, good investment advice.
The Declaration did not create a country either. Papers can not create anything. It created a People united with a sense of purpose. The original Constitution (not the fraudulent Constitution substituted in the aftermath of the contrived Civil War) denoted what the People's inherent rights were, along with explicit restrictions on what was a necessary common defense required to defend those inherent rights.
"Let it not be said that we did nothing."-Ron Paul
"We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book
Owners take better care of their property- they are less likely to go to $#@[/B]!. As for taxes, if taxes go up, rents also go up- renting is you paying somebody else's taxes. One good thing about California- property taxes are based on what you bought your property for- not what your neighbor pays for his. If local property values go up, your taxes are still based on what you paid for it. They can't raise your taxes if the guy next door sells his for twice what you got yours for. He pays twice the taxes but you don't. All of your complaints are also faced by renters- you don't avoid them by not buying.
Home prices have rarely gone down. But the value of an investment only matters twice- when you buy it and when you sell it. If it goes up and down in between does not matter. If you aren't selling a stock or a home it does not matter if the value falls for a while.
I just bought A Man for All Markets by Ed Thorp on Kindle. I came across this while reading. I don't fully agree but given that he is the smartest person in the world, it seems worthwhile to post it.
majority of American households own their own home. For many it is a large part of their wealth. How good an investment has it been? In 1952, one of my uncles and his wife paid $12,000 for a small one-story wood-and-stucco home in the working-class community of Torrance, California. In 2006, he sold his house near the peak of the real estate bubble, which was especially extreme in California. Despite the deterioration of his neighborhood into a
borderline gang area, and the advanced age of his house, he netted about $480,000 after taxes and commissions. His investment multiplied forty times
in fifty-four years, for a compound annual return of 7 percent. Also, his expenses of a few percent a year in property taxes and maintenance were less
than what he would have paid to rent a similar property.
Although stories like this abound, my uncle was lucky. According to economist Robert Shiller, average US home prices after inflation increased from 1890 to 2004 by about 0.4 percent a year, with the rate being about 0.7 percent in the later 1940–2004 period. It follows from this that making a profit should not be a primary reason for owning your home. You can rent instead and do about as well financially. However, you may want, as I do, the non-quantified benefits of homeownership: You are your own boss, able to make changes and improvements at will without prior approval from a landlord. If you have a fixed-rate loan or have paid for your house in full, you have the security of knowing that your future monthly costs are controlled.
Kudos for saying 'net after commissions and taxes', it really puts things into perspective.
Making a profit shouldn't be the primary reason, but saving money is in effect making money, and most people still want that. Sadly, it's because people are thinking of making a profit that's led to bubbles.
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