patrick.net

The Fed is replaced by the USPS Bank, which is the only entity issuing FHA loans. FHA and VA loans will be limited 25 years, dropping a year starting two years after the 25-year is imposed to 15.

If you can't pay it off in 15 years, you can't afford it. Or get a full private.bank loan. 15 year loans used to be the standard.

Make housing affordable again.

College loans are limited to STEM fields and capped at $20k year + CPI. and only available to the top 10% of students.

AmericanKulak says

If you can't pay it off in 15 years, you can't afford it.

Bingo! Car loans should be 20% down and two years max.

The first and greatest sin was permitting fractional reserve banking. That was the lie that seeded the great corruption that is overwhelming us today.

Banks pretend they have more money to lend (1000% more under 10% reserves) than they have. Eventually, everyone is pretending to own what is on credit, including the US gub'ment.

HeadSet says

Bingo! Car loans should be 20% down and two years max.

Yep.

I certainly don't remember 72-month loans back in the day.

stereotomy says

The first and greatest sin was permitting fractional reserve banking. That was the lie that seeded the great corruption that is overwhelming us today.

Banks pretend they have more money to lend (1000% more under 10% reserves) than they have. Eventually, everyone is pretending to own what is on credit, including the US gub'ment.

Right?

The late 19th century was a deflationary period. The price of almost everything went down over several decades.

It wasn't crazy a few decades ago for ordinary people that didn't have top 10% incomes to pay cash for a NEW car, or to pay tuition out of income.

AmericanKulak says

The price of almost everything went down over several decades.

Yes, as it should when productivity increases.

But around the 1970's, all increases in productivity resulted in more money for shareholders and less than nothing for the workers who were being more productive.

Patrick says

But around the 1970's, all increases in productivity resulted in more money for shareholders and less than nothing for the workers who were being more productive.

Be careful about that statistic. For example, a small farm could have bought a tractor and replaced several workers. The labor costs have gone down for the farmer due to fewer workers, but that tractor driver gets paid more than any of the former field hands.

AmericanKulak says

If you can't pay it off in 15 years, you can't afford it.

True. All attempts at increasing "affordability" by guaranteeing loans or extending them actually make housing (or education, or whatever) less affordable by increasing the price. Suppliers always increase the price to negate any such "affordability" program. This is why housing and education prices are insane.

Banks love it. More and longer loans to collect interest on.

The public gets fucked, but is generally so stupid that they just don't understand.

I was reading the history of mortgages, and the immediate postwar decades, the mortgage was 15 years.

By 40, most men had paid off their homeloan or were about to.

Also, we need to make Credit Cards fall under the law of the state where the grantee lives.

"But states rights". No problem here. We are just changing the standard from the State Law of creditor to State Law of the grantee. Don't like it? Then Dakota credit companies don't loan in states with usury laws.

I suspect keeping people on the plantation as share-croppers was a side-effect.

There's been so many innovations, like the Grid Nail. That innovation alone reduced materials and time costs at least 15% from the suburban home builds of the 1940s-50s while increasing roof strength and reducing the need for load bearing interior walls. Yet houses are more expensive?!