tag:blogger.com,1999:blog-11906042.post8243020740003654005..comments2024-03-22T11:55:50.335+13:00Comments on Not PC: Housing bubble is consuming our capitalPeter Cresswellhttp://www.blogger.com/profile/10699845031503699181noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-11906042.post-7447598017018772092015-11-11T10:21:18.286+13:002015-11-11T10:21:18.286+13:00"Oi, communist, it's not 'our' ca..."Oi, communist, it's not 'our' capital. "<br /><br />Well, if you're a saver, it is.<br /><br />If the new money allows borrowers to buy existing resources=-and you're an owners of resources--it is...Peter Cresswellhttps://www.blogger.com/profile/10699845031503699181noreply@blogger.comtag:blogger.com,1999:blog-11906042.post-10074711771585171142015-11-10T22:07:02.094+13:002015-11-10T22:07:02.094+13:00Oi, communist, it's not "our" capita...Oi, communist, it's not "our" capital. <br /><br />Thing is, with mortgage loans, there is no capital.<br /><br />The way it works from what I understand, is; if you borrow say 500k, the bank simply creates that amount on their computer, and it goes to pay for the house. The 500k did not come from savers or deposits. Most people think it does, but it ain't so. It's just created. Creating credit like this is one of the special privileges of having a banking license. <br /><br /><br /><br /><br />Sam Phttps://www.blogger.com/profile/09035978404256500568noreply@blogger.com