Quote:
Originally Posted by pai mei
Nobody cares because the Federal Reserve - which is a private corporation, can always print money out of nothing, backed by nothing. They make people think that papers have value then people work for real to pay back the money they take from banks
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Isn't it a beautiful thing when you think about it?
You can get a 30 year mortgage with no money down at 6%, deduct the interest - making the after tax rate about 3% (depending on the state). Inflation runs about 3%, so your real cost of money is 0%. Then you have control of an asset going up in value. So by the time you sell, you have lived in a house for free, effectively paid no interest, have enough money for a bigger more expensive house, still have money left over, and pay no capital gains tax on any profit less than $500,000.
Sorry, for the hijack but - I love our "backed by nothing" system and could not let an opportunity to express my love pass (especially so close to Valintines Day).