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Selling The Same Thing Over And Over Again

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I keep thinking as to who is the ultimate winner during rampant HPI and it always swings back to the banks.

When you think about it, a house built in the 1930s may have been sold dozens of times, each time mostly for a larger amount. However, the original product, the house, remains the same (with the exception of maintenance, extensions etc.).

Therefore, the banks are effectively able to re-sell a product that they never owned themselves many times over for larger and larger amounts, the price of which they directely dictate (i.e. 3 x incime, 4, 5, 6 and so on). Each time it sells, a new generation in encumbered with a loan that takes most of their income.

Oh wouldn't it be good if houses cost what they originally did plus a bit of inflation so that we could save, spend on real services and products that would in turn employ people and therefore keep the economy working? You could even get a decent pension going ! :huh:

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