“Free” Money? Think Again…

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3 Responses

  1. Greger says:

    "a large percentage of Americans must think that money comes out of thin air and the gubmint can just print more of it"

    Oh hum….

    Well that’s actually exactly how it works….

    video.google.com/videoplay?docid=-9050474362583451279

  2. Chuck says:

    I’ve seen ths video before 🙂

    The point of the rant is that this type of thinking and behavior by the lenders is exactly what got us here in the first place.

    "Creating" money and handing it over to those who are not responsible enough or not capable of paying mortgages over long terms is at the core of the real estate bubble (or at least one of the main issues).

    Basically, it’s a stupid idea to believe that you can create some money and hand it over to anyone. The family that bought my previous townhouse only put down 5%…my wife and I secretly wondered how they could possibly afford to buy the townhouse if all they could muster was 5%. And yet, some lender happily gave them a mortgage, even given the risk that they pose.

  3. Greger says:

    Your right on the money.

    And to put it another way, people have to realize that there is no such thing as a free lunch.
    Thanks for the blog btw.

    Cheers