posted on Feb, 21 2012 @ 01:57 PM
In the 70s, americans would have substantial savings for retirement.
Rather than place in banks to earn medicore returns, they invested in property and were rewarded with better income than from banks. Place $100.000 in
a bank you would get probably 5% ( $5,000) a year, but rent out the property, and you will get $1000 /MONTH!
As such, many turned to 'investing' in properties for 'retirement' income today, even if 'retirement' means at 30 years old.
Some had claimed that in order for capitalism to work, govs must hand offs private enterprise. That was the worst mistake mankind and govs made, for
there is no end to unconscionable human greed. Banks freely loan and even encourage lendings for ' gearing' in the belief that as population
increases as sure as the sun will rise each morning, properties will apppreciate over time.
Although this is true, even after financial crisis when mistakes had been corrected, it unfortunately places a high burden on the next generations.
Today, one can buy a piece of land, build a high rise condo or Frank Wright copy design home using cheap mexican labour along with cheap worthless
china imported fixtures, and would be able to sell at a premium. Sucker buyers are born by the minute.
Buy at a million, with interest at 6%, that sucker will try to sell to another within a year at $1.5million, instead of waiting to do so after 10
years. Greed is uncontrollable. It pushes the next sucker to do the same. And thus, by the time your grandchildren needs a roof, it is way beyond
their salary and worse, far beyond inflation.
THis is happening all over the world now. And the worse of this mistake is being seen in newly opened up democratic nations such as Burma, where
investors flock there, not to invest in manufacturing but in properties.
Suffer the little children, as is happening to americans and the chinese people in China.....Govs worldwide had to step in to ensure that investments
are used where they are truly needed to uplift societies, and not personal gains....