Loans are fine without fractional reserve banking. It's when they magick money out of thin air that I have a problem with it. If I did the same thing the banks are doing they'd throw me in jail.

Prices quickly grow to the maximum estimated monthly payment the slave can afford and the slave usually vastly overstimates what that can be long term leaving them forever in debt slavery.

And bank loans create money from thin air. They don't even have that money to loan, they just write a check that they can't cash. All the banks are in cahoots so they accept each other's checks. All this drives down the value of the dollar... making things cost even more. What a racket.

The Free Market ™ is whatever the courts decide it is. You can have a complete lack of government intervention in the market except for the courts and you will still end up with the scum rising to the top because organized fraud exists. There's no nonviolent way to resolve this because ultimately fraud is just hidden violence.

same thing with cars

average person cant afford a brand new pickup at 60k+ so the cars get leased and people end up buried in debt from the leases rolling over into the next. they'll add 5k+ at the end of the lease for stuff that doesnt exist which you end up owing in the next car.

Well, that is demonstrably untrue.

50k cars are sold all the time in huge quantities and the loans are held by copmanies that charge real interest rates. So, that is false.

700k condos are sold all the time in huge quantities and the loans are held by copmanies that charge real interest rates. So, that is false.

The only difference between the above and expensive universities is that the interest payments are deffered until graduation. After which you are paying that back, you cannot even declare bankruptsy to get it absolved.

Sure, the interest rates are cheap now, and probably artificially so. Sure, if interest rates went up to 10% maybe 50% of people would defualt on their loans. But the reality is actually this:

• The market CLEARLY wants all this stuff and will go into debt to finance all the things they want. ESPECIALLY if they are expensive. Hell, people go into debt for cheap things all the time, cheque cashing places exist because people are dumb.

• We have just had people largely uneployed or low on employment for more than a year. The amount of elasticity in the personal financial of individuals is far far far greater than we ever thought. We used to think if people had to stay at home for a year everything crashes. Nope, not true.

• We also learned that if you keep people home for a year largely unemployed that the demand would go away and the economy would die. Nope, not true at all. Everyone is dying to find employees because demand is so high.

Everything this post is talking about is bullshit.

Yeah, it's cheap to borrow 600k for a degree, but not after you graduate. People are totally happy to borrow and get in debt.

LOL, as much as I hate loans, prices won't lower to meet a new price point. A $300,000 McMansion still requires a certain amount of lumber and concrete and labor. You aren't going to get a $1,000 McMansion just because that's what the Average American has cash on hand.

What's going to happen is, people will start buying 20' shipping containers.

It's not the same thing.

Here's what you do. You bite the bullet and take out a loan. Why? Because that's just the game you have to play. Don't go through the bank. Get a loan from mom and dad, and pay them back because they are kin.

But, you buy the smallest cheapest shithole trailer on a quarter acre that YOU own. Pay it off as soon as you can. Highest priority.

Fix it up a little. Improve it. Live in it a few years after it's paid off. Meanwhile, you are charging yourself rent. Save that money. Sell the trailer at profit and upgrade.

Wash rinse and repeat, without the loan this time.

https://poal.co/s/AskPoal/61658

I asked Poal about this once and there were some good responses.

Haven't thought about it like that before. It's an interesting point and I can't immediately find fault with that logic.

I am currently getting one of these fake loans to buy 5 acres in a small town...I get what op is saying but I'd rather have a farmstead based on lies then live in the city any longer