“The government owns Fannie Mae and Freddie Mac. It subsidizes mortgage rates: low. They should use the home they bought as a starter home as an investment property. This is sensible investing. But this is not what most people do. Young people who live in areas in which they cannot afford to buy a home are making a mistake, to this extent: they could have begun to develop equity by purchasing the first home with a 30-year mortgage. That is a tremendous opportunity missed. But they were going to miss it anyway. They were not going to use the property as an investment property. They were going to get on the treadmill of social status, buying ever larger houses in ever nicer neighborhoods.”
http://www.garynorth.com/public/12755.cfm
Related posts:
Jim Rogers on the EU, the U S election, and the next big investment opportunity
Ron Paul: Moving Toward War in Syria
The President Punts in the Syrian War Game
You Don’t Need a Weatherman to Know Which Way the Wind Blows
Errant Code? It’s Not Just a Bug
Pakistan: Geopolitical conundrum
Krugman thinks low interest rates are behind the boom in paper currency. Not so fast!
Obama Meets Security Advisors Over "Most Specific, Credible Terrorist Threat In Years"; US Forces On...
Bill Bonner: Is the economy is weaker than we think?
Jim Rogers Interview with NewsMax TV 20 May 2013
Would A Higher Minimum Wage Help McDonald's Workers?
Greek Dilemma: A Product of the Dialectic
Google Bus Hate: Give It a Rest
DetroitCoin: Why we should make Detroit into a Bitcoin Hub
Bush-Era Diplomatic Official Endorses Military Coup In Venezuela