Alright, I was recently criticizing FDR for introducing the 30 year mortgage and I got shouted deown for being “anti home ownership”. I said the most legitimitate way to purchase a house was to pay for it all up front or save up to purchase a house. I also pointed to the fact that many households are currently “under water”, but still managed to get yelled at.
Anyone have any Austrian influenced/written articles on this issue?
The idea of an investment that takes 30 years to mature always struck me as a bit artificial. How can anyone possibly know they won’t need their capital for 30 years?
Clayton -
Clayton, a fair number of companies just sold 100 year bonds. So I don’t think that 30 years is that long.
But the fact that a product or service exists - within a heavily statist economic order - does not imply that a genuine demand for that product or service exists.
Clayton -