Quote:
Originally Posted by Lauxa 
Okay, so let's say we are in a world where you either have a house or you don't... either have a car or you don't... What are we looking at? More rental property and leases on vehicles? Is that so bad?
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In the case of a vehicle it is better financially to just buy a $1500 car however in the case of a house you would simply pay rent because only the wealthy could afford houses.
Is it so bad?
Well no but not being able to loan money it keeps the rich rich and the poor poor.
Here's what it comes down to:
Society with Loans: Some people use money as leverage to become wealthy. In their case its better to have a system whereby loans exist.
Society without Loans: Some people can't resist themselves and have no control over their spending. These people may do better in a society whereby there are no loans. However overall the rich will stay rich and the poor will stay poor. The same person who used leverage to build a house or expand his business would never make it without loans.
If you think the answer is to have those with money simply to invest money into companies this is a horrible idea. Imagine a world where you are forced to take on money partners who meddle in your life. I much prefer borrowing from the bank than having to go to a loan shark who would become my partner by force. Think of what you people are recommending here.
I see the posts made by everyone that they don't believe that doing away with loans would simply mean that you wouldn't have a house or that it wouldn't be such a bad thing. Well LEVERAGE is the key to growing wealth.
But as long as we're dreaming, OK then, I wish we lived in a society where we could have houses but no debt, have businesses that require no loans and that money was free with borrow with no interest and available to all.
