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Yanis Varoufakis On Homeownership - The Global Minotaur

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Nevertheless, most Europeans remain convinced of the Crash’s Anglo-Celtic cultural roots. They blame the fascination that English-speaking people have with the notion of home ownership at all costs. They find it hard to wrap their minds around an economic model which generates silly house prices by stigmatizing rent-paying non-homeowners (for being in thrall to landlords) while celebrating pretend homeowners (who are even more deeply indebted to bankers).

From the book The Global Minotaur

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Do you have the paragraph(s) leading up to the "nevertheless" at the start of that one out of interest IRRO?

I guess he's explaining global imbalances but it would be good to have the context (I don't have the book)

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here you go ;)

4. Cultural origins

In September 2008, Europeans looked smugly over the pond, shaking their heads with a self-serving conviction that the Anglo-Celts, at long last, were getting their comeuppance. After years and years of being lectured on the superiority of the Anglo- Celtic model, on the advantages of flexible labour markets, on how inane it was to think that Europe could retain a generous social welfare net in the era of globalization, on the wonders of an aggressively atomistic entrepreneurial culture, on the wizardry of Wall Street and on the brilliance of the post-Big Bang City of London, the news of the Crash, its sights and sounds as they were beamed all over the world, filled the European heart with an ambiguous mix of Schadenfreude and fear.

Of course, it was not too long before the crisis migrated to Europe, metamorphosing in the process into something far worse and more threatening than Europeans had ever antici- pated. Nevertheless, most Europeans remain convinced of the Crash’s Anglo-Celtic cultural roots. They blame the fasci- nation that English-speaking people have with the notion of home ownership at all costs. They find it hard to wrap their minds around an economic model which generates silly house prices by stigmatizing rent-paying non-homeowners (for being in thrall to landlords) while celebrating pretend homeowners (who are even more deeply indebted to bankers).

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here you go ;)

4. Cultural origins

In September 2008, Europeans looked smugly over the pond, shaking their heads with a self-serving conviction that the Anglo-Celts, at long last, were getting their comeuppance. After years and years of being lectured on the superiority of the Anglo- Celtic model, on the advantages of flexible labour markets, on how inane it was to think that Europe could retain a generous social welfare net in the era of globalization, on the wonders of an aggressively atomistic entrepreneurial culture, on the wizardry of Wall Street and on the brilliance of the post-Big Bang City of London, the news of the Crash, its sights and sounds as they were beamed all over the world, filled the European heart with an ambiguous mix of Schadenfreude and fear.

Of course, it was not too long before the crisis migrated to Europe, metamorphosing in the process into something far worse and more threatening than Europeans had ever antici- pated. Nevertheless, most Europeans remain convinced of the Crash’s Anglo-Celtic cultural roots. They blame the fasci- nation that English-speaking people have with the notion of home ownership at all costs. They find it hard to wrap their minds around an economic model which generates silly house prices by stigmatizing rent-paying non-homeowners (for being in thrall to landlords) while celebrating pretend homeowners (who are even more deeply indebted to bankers).

Except of course you could be forgiven for thinking in the UK that its actually all the Europeans fault and how if we just cut loose from them we'd be OK.

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The City of London is culturally and materially responsible for the crisis we're in. The development of pretty much everything that's wrong with modern capitalism - the shadow banking system, the empire of tax havens, the ethos of too big to fail and of laissez faire absolutism - can be traced back to the shits, monsters, frauds and voluptuaries of the Bent Mile.

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The City of London is culturally and materially responsible for the crisis we're in. The development of pretty much everything that's wrong with modern capitalism - the shadow banking system, the empire of tax havens, the ethos of too big to fail and of laissez faire absolutism - can be traced back to the shits, monsters, frauds and voluptuaries of the Bent Mile.

All they have done is push up the price of the most expensive thing most people would ever buy then lend against them. It's immoral.

If people universally needed something else to survive and the bankers could control the price and lend against it house prices would collapse.

This is not about house prices it's about the power of the banks and their hold over the working man.

The bankers need to be taken down a pen or ten.

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True about the silly prices, but at the end of it the buyer owns while the renter is paying rent until he dies. Seeking to have minimal obligations in the future isn't such a strange thing to me.

The renters are paying a fraction of the cost to buy and the difference invested in nothing more than bog roll would make the renter better off.

Better still, people now can't afford to buy till they are around forty. by the time people pay off their mortgage they will be due to die. they will get 0 years of earning and not payin a mortgage. The chances of actually working continuously with good wages for 25 years at that age must be low and With their wages that have not gone up for decades means they won't be getting better off, then if the bottom of the pyramid idiots want to trade up will they have a mortgage when they are 75., how would one pay for it?

I see no benefit in buying, only massive risk.

If you are not familiar with arithmetic you ought not to comment.

Edited by TheCountOfNowhere

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Do you have the paragraph(s) leading up to the "nevertheless" at the start of that one out of interest IRRO?

I guess he's explaining global imbalances but it would be good to have the context (I don't have the book)

I do but someone has beaten me too it.

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Better still, people now can't afford to buy till they are around forty. by the time people pay off their mortgage they will be due to die. they will get 0 years of earning and not payin a mortgage. The chances of actually working continuously with good wages for 25 years at that age must be low and With their wages that have not gone up for decades means they won't be getting better off, then if the bottom of the pyramid idiots want to trade up will they have a mortgage when they are 75., how would one pay for it?

There are places in the North where you can get reasonable priced property, and not everyone is in such dire straits as you describe.

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The City of London is culturally and materially responsible for the crisis we're in. The development of pretty much everything that's wrong with modern capitalism - the shadow banking system, the empire of tax havens, the ethos of too big to fail and of laissez faire absolutism - can be traced back to the shits, monsters, frauds and voluptuaries of the Bent Mile.

Seconded.

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here you go ;)

4. Cultural origins

In September 2008, Europeans looked smugly over the pond, shaking their heads with a self-serving conviction that the Anglo-Celts, at long last, were getting their comeuppance. After years and years of being lectured on the superiority of the Anglo- Celtic model, on the advantages of flexible labour markets, on how inane it was to think that Europe could retain a generous social welfare net in the era of globalization, on the wonders of an aggressively atomistic entrepreneurial culture, on the wizardry of Wall Street and on the brilliance of the post-Big Bang City of London, the news of the Crash, its sights and sounds as they were beamed all over the world, filled the European heart with an ambiguous mix of Schadenfreude and fear.

Of course, it was not too long before the crisis migrated to Europe, metamorphosing in the process into something far worse and more threatening than Europeans had ever antici- pated. Nevertheless, most Europeans remain convinced of the Crash’s Anglo-Celtic cultural roots. They blame the fasci- nation that English-speaking people have with the notion of home ownership at all costs. They find it hard to wrap their minds around an economic model which generates silly house prices by stigmatizing rent-paying non-homeowners (for being in thrall to landlords) while celebrating pretend homeowners (who are even more deeply indebted to bankers).

Thanks (and to IRRO).

They clearly still don't understand what's going on.

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Getting a bit of a slagging in Latvia today:

http://www.bloomberg.com/news/articles/2015-04-24/varoufakis-said-to-take-hammering-from-frustrated-euro-ministers

Euro-area finance chiefs said Varoufakis’s handling of the talks was irresponsible and accused him of being a time-waster, a gambler and an amateur, a person familiar with the conversations said, asking not to be named because the discussions were private.

The don't like it up 'em.

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The basic premise of the book is that after Bretton Woods collapse the US had a large deficit and instead of paying it back it went for the option of simply increasing it and getting the surplus nations to pay for it in effect via imperial tribute.

Although I've only read for the intro and first chapter so far.

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I'm really start to like this guy :)

Absolutely, me too. I take Billybong's point that he might yet turn out to be an amateur, but for as long as he's causing people to look at the situation in a different light, and pissing off that Dijsselbloem bloke, he has my full respect.

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Absolutely, me too. I take Billybong's point that he might yet turn out to be an amateur, but for as long as he's causing people to look at the situation in a different light, and pissing off that Dijsselbloem bloke, he has my full respect.

I think the problem is he has a good grasp of macroeconomics and none of the other finance ministers in Europe do.

He's been a Prof in the area and he's coming up against people like:

220px-George_osborne_hi.jpg

Ours has a degree in modern history!!!

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I'm really start to like this guy :)

I'm starting to go the other way. He seems a bit too fond of the limelight for my liking. What the greeks need is someone to roll their sleeves and get stuff done. Someone a bit more schäublisch.

Edited by Steppenpig

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The basic premise of the book is that after Bretton Woods collapse the US had a large deficit and instead of paying it back it went for the option of simply increasing it and getting the surplus nations to pay for it in effect via imperial tribute.

Although I've only read for the intro and first chapter so far.

well if europe had to pay for their own defence it might be a rather different story.

germany....will dominate....everybody

france, will attempt to undermine the brits who are the only nation in europe who are capable of fighting back, then cave in, get occupied and switch sides( nothing unusual there), and then pretend they are best mates with germany.

brits....hated adversary....period...even though they have been run by french and germans for the past 1000 years...I wonder what happens when europe is REALLY run by the BRITISH..we will not take at all kindly to turncoats.

.or will the british up sticks and go, leaving:

a) france and germany to squabble about who runs europe

B) what to do about defence now the fall guys of the brits and the yanks have become so utterly pissed off with france and germany starting wars they expect the brits and yanks to finish....the brits and the yanks say, no thanks....your bag.

you made your bed, now lie in it.

Edited by oracle

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I'm starting to go the other way. He seems a bit too fond of the limelight for my liking. What the greeks need is someone to roll their sleeves and get stuff done. Someone a bit more schäublisch.

Perhaps what the Greeks need is someone like Varoufakis who has the stature to tell the truth about the entire Greek 'bailout' fiasco and get it out there.

As to the limelight I guess if your aim is to reframe the debate and try to create a new paradigm then standing in the limelight may be the best platform to do it from.

I don't think Varoufakis is wrong- just massively inconvenient to a lot of people who have a deep vested interest in maintaining the fiction that-one day- Greece will be able to repay it's debts.

Among the accusations being thrown at him is the charge that he has' wasted time' in meetings of finance minsters by talking too much about macro economics :lol:

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I don't think Varoufakis is wrong- just massively inconvenient to a lot of people who have a deep vested interest in maintaining the fiction that-one day- Greece will be able to repay it's debts.

Among the accusations being thrown at him is the charge that he has' wasted time' in meetings of finance minsters by talking too much about macro economics :lol:

The horror, how boring that macroeconomics be discussed in finance meetings. Why discuss reality when you can discuss fantasy.

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