In that quote, I was meaning to say that money is pieces of paper or numbers on a computer. It's an abstract thing. Wealth, on the other hand, I insist is concrete things like goods and services - a trip to tahiti, or a vacation in bali, or a new car, or a computer.
Now, I hope that you also understand that my main thrust as I write is to muse; it's how I seek to puzzle things out. Any assertions I may have made can be freely questioned by anyone else - and are certainly being questioned by me, as well. My point in having a conversation as I have had over the last couple of days, is that it helps me to develop my ideas, and to correct them wherever they have gone off track.
Indeed, I think I've reached a set of conclusions which I'm happy with over the course of the discussion the last couple of days at reddit. A short answer to you, and to the folks who wrote the headlines "interest=rent of money" and "No one is forced to take loans" (Should I include a nickname field for commenters? It might be easier that way to talk with folks) would be that I believe that the debtor is actually providing a service, rather than purchasing a service.
My brother was a mortgage broker for a little while, and so I've had some exposure to the ins and outs of the business. Yes, the relationship with the client who is desiring a loan is important. But even more important is to find the bank who is willing buy the right to collect on that homeowner's loan.
If we turn things around, and think of it in this way, then the same rules which tend to correct the rest of the market also can work here. The bank which buys that right to collect the monthly mortgage payment is responsible for deciding on the quality of the service which the mortgage broker (and the home owner) is providing. Banks chose not to do that, because of this odd idea that with more risk comes more reward. What does that translate to in plain english? Well, it means that the banker rubs her or his hands with glee and anticipates a predatory hike in interest rates because of an adjustable rate loan.
Ok.. we can continue our conversation over here.
In that quote, I was meaning to say that money is pieces of paper or numbers on a computer. It's an abstract thing. Wealth, on the other hand, I insist is concrete things like goods and services - a trip to tahiti, or a vacation in bali, or a new car, or a computer.
Now, I hope that you also understand that my main thrust as I write is to muse; it's how I seek to puzzle things out. Any assertions I may have made can be freely questioned by anyone else - and are certainly being questioned by me, as well. My point in having a conversation as I have had over the last couple of days, is that it helps me to develop my ideas, and to correct them wherever they have gone off track.
Indeed, I think I've reached a set of conclusions which I'm happy with over the course of the discussion the last couple of days at reddit. A short answer to you, and to the folks who wrote the headlines "interest=rent of money" and "No one is forced to take loans" (Should I include a nickname field for commenters? It might be easier that way to talk with folks) would be that I believe that the debtor is actually providing a service, rather than purchasing a service.
My brother was a mortgage broker for a little while, and so I've had some exposure to the ins and outs of the business. Yes, the relationship with the client who is desiring a loan is important. But even more important is to find the bank who is willing buy the right to collect on that homeowner's loan.
If we turn things around, and think of it in this way, then the same rules which tend to correct the rest of the market also can work here. The bank which buys that right to collect the monthly mortgage payment is responsible for deciding on the quality of the service which the mortgage broker (and the home owner) is providing. Banks chose not to do that, because of this odd idea that with more risk comes more reward. What does that translate to in plain english? Well, it means that the banker rubs her or his hands with glee and anticipates a predatory hike in interest rates because of an adjustable rate loan.
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