by Steve Keen says how we are just selling old houses to each other and not putting our money into designing products and services that people want which would help the economy. And people are so loaded with debt that they have no purchasing power which also drags down the economy.Steve Keen says that the banks have created a ponzi scheme and people have even been encouraged to take on interest only mortgages by telling them their houses with double in value in 5 years and so they well get their money back. But where will they live if they sell their house? Will they go back to live with their parents, use the money to travel the world, or go and rent somewhere to live? Its hardly a desirable situation for most people.I guess people could use the profit they have made as a deposit on a
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Steve Keen says that the banks have created a ponzi scheme and people have even been encouraged to take on interest only mortgages by telling them their houses with double in value in 5 years and so they well get their money back. But where will they live if they sell their house? Will they go back to live with their parents, use the money to travel the world, or go and rent somewhere to live? Its hardly a desirable situation for most people.
I guess people could use the profit they have made as a deposit on a house and then get a standard mortgage, but Steve Keen says that the housing market is bottoming out and profits may be non existent.
When asked if the people who take on such risky mortgages are just as guilty as the banks for playing the market, Steve Keen says no, they have been mis-sold, and it should be treated no different to any other ponzi scheme, or racket.
Video embedded.
https://www.rt.com/shows/renegade-inc/438036-trump-us-war-crisis/