Monday, October 4, 2010
The video is heavy duty stuff
Jubilee Shares and the American Monetary Act
"If we instead based the level of debt on the income-generating capacity of the property being purchased, rather than on the income of the buyer, then we would forge a link between asset prices and incomes that is currently easily punctured by rising debt. It would still be possible–indeed necessary–to buy a property for more than ten times its annual rental. But then the excess of the price over the loan would be genuinely the savings of the buyer, and an increase in the price of a house would mean a fall in leverage, rather than an increase in leverage as now. There would be a negative feedback loop between house prices and leverage. That hopefully would stop house price bubbles developing in the first place..."
Posted by techieman @ 11:51 AM (784 views)
One thought on “The video is heavy duty stuff”
Add a comment
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
techieman says:
I would recommend its watched but its really not for the faint hearted [quite long too – about 45 mins – but fascinating stuff IMO]:
http://www.debtdeflation.com/blogs/wp-content/uploads/2010/10/KeenAMI2010WhyCreditMoneyCrashes.swf
He gives a talk at the American Monetary Institute where they are looking to change how banks create money.. Keen is ambivalent… and explains its not how its produced but how its used thats the issue.