it's funny how people value,
I don't think that people are consistent at all in their thinking about risk.
A view developed in 2006 that the housing prices are going up, I said before 2006.
Housing prices are going up so fast you can make a lot of money by, in fact
you could make a huge amount of money, percentage-wise, by just buying a house.
If you bought a house in 2000, home prices went up, well, I don't know,
I should have this memorized, but let's say they went up 50% after that,
you make 50% on your investment, it's pretty good.
But if you borrow 97% of the money, it's just astronomical what you could make.
People got excited about leverage because they also had
the perception that home prices don't fall.
I know this was out there, people had this idea.
Why do they think that home prices don't fall?
Just the Law of Economics, house prices never fall?
But we know the law is wrong because in 1933 they were falling rapidly and
so, I guess that's beyond people's memories.
So, people got kind of an optimistic bias just before the financial crisis.
And the economy leveraged itself up.
It isn't the government that did it.
The government if anything, was leaning against that with regulations.
So anyway, so that's the end of my thoughts.
So is debt immoral?
I tend not to think of it at all as immoral.
We talked about the Irving Fisher diagram.
How the ability to borrow and lend raises utility.
I think that at various times in life you need money,
the extreme case is you need money for illness,
you're sick, you're going to die, you need expensive treatment.
Of course you borrow the money.
