Do We Actually Need Debt?

[@EconomicsExplained]

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[@blackmaster999]

FOOL! It's debt why Europe, America, Australia, Japan etc, economies are falling apart and poverty is increasing. An economy run on debt doesn't work which is why most people in Western countries have little to no wealth. Black countries in Africa and the Caribbean are the best-run economies people in Black countries have little debt and most people fully own their own homes unlike people in the west who rent and depend on mortgage.

[@Jcewazhere]

"[Homes] are just inert buildings that don't produce anything" I've never heard a better argument for installing solar panels and having a productive garden/basement mushroom farm/weed closet/etc :D

[@gn3441]

Could robotics spell the end of capitalism?

[@gn3441]

@peace leader But is that still capitalism? The advantages of automation are too great to pass for any business to stay competitive ergo, any business will end automatized. Therefore there won't be anyone with a job and then no customers. The only variable left is scarcity.

[@gn3441]

@peace leader In general I agree with you, we are on the edge of mastering our destiny. Nevertheless capitalism is heading to is own end. The virtues it have are similar to survival fitness but the problem is that multinationals became too dominant because they can harvest and store resources and knowledge out-competing any other business. This is similar as Humankind have taken control over the rest of the species. On the other hand, robotics just makes all irrelevant.

[@scaper12123]

"Sometimes, people with lots of money don't necessarily have great ideas." Truer words have never been spoken.

[@maximilian19931]

One name: ELON MUSK

[@nimrod06]

Neither would they spot good ideas for lending money

[@rhine2y6y]

I don't think that statement was made with moralistic overtones, as your statement might be suggesting. An equally true statement could be made that most people, poor or rich, probably are pretty poor allocators of excess capital, especially in a modern society with increasingly complex enterprises and investment opportunities.

[@manofculture8026]

"First casualty of war being morals"♥️ That's why we love EE

[@EconomicsExplained]

Last time I was this early mortgage bonds were a solid asset class.

[@matth23e2]

bruh

[@Batien]

Thats cheating

[@ducknguyen1962]

bruh

[@bananalord8461]

I call hax

[@Trekfolie]

Last time I was this early I got a solid 5% rate on my saving account

[@GamerzShit]

His search history: "Business people talking and smiling very happily." "Man on roids lifting weights epically and dramatically." "Homeless man on the street, very sad and shocking!" "Roses" "Burning roses"

[@spicychad55]

Also: "how to lengthen my KZbin videos for maximum ad revenue"

[@josephrobinson6171]

Spicy Chad i mean he doesn’t have any 10:30 kind of length videos really

[@spicychad55]

@@josephrobinson6171 if you look at his "Videos" section on his channel page, you'll see 98% of his videos are over 10 minutes within the past 7 months. This isn't a new thing for him, he is clearly gaming the system.

[@patrickdolan1523]

@@spicychad55 You have no idea what gaming the system is. Making a video longer than 10 minutes is not gaming the system, making a video that is exactly 10:05 is gaming the system.

[@Croz89]

I bet he has a huge shutterstock video bundle or something and just picks out a few each time. You can often get big packs of rather random stuff for a few tens of dollars.

[@kaen_tqk3918]

This channel is slowly making me want to take up economics.

[@JamesAJ]

Dude same. This and r/wsb has actually gotten me to binge on investopedia, bloomberg, and a whole bunch of finance basics. What's happening to me?!?

[@jacob9673]

If you’re going to college get a science or math degree, it gives you a more rigorous quantitative background that helps you move into economics.

[@furinick]

A good teacher does wonders

[@TylerSolvestri]

I love economics but I hate math lol

[@allamasadi7970]

@@JamesAJ I think the finance niche on KZbin has blown up over the last few years

[@mykeprior3436]

Imagine making the banks responsible for what they're investing into and creating servitude for? GASP. Debt should've been a tool of last resort, never running the entire machine.

[@hongvicodes]

Debt is not a given - EE

[@shriekinleada794]

Can’t fund a loan without a debtor. It’s a two way street.

[@Eric149162536]

Banks already have an interest in checking businesses though. Individuals too. Banks ALREADY lose money if their borrower goes bankrupt under the current system.

[@keldonlemon]

Myke Prior we'll said mate.

[@monad_tcp]

@@Eric149162536 not if they are bailed out by the gov every time

[@mattbutler2692]

Damn, you really be pumping these videos out like you're trying to put food on the table during a crisis

[@tengkualiff]

probably since he is stuck at home

[@19MAD95]

Tengku Aliff that’s the joke

[@Shvabicu]

I think he spends too much time on wsb and has to recoup his losses from derivatives gambling

[@beback_]

Or just bored

[@changyang1230]

It’s probably good business - I bet videos about economy is even more popular than usual in uncertain time like this.

[@songofyesterday]

"Houses are not productive assets" ...unless you're in Asia, where it's perfectly legal to vend street food from your porch. Man I miss street food on every corner.

[@peterrose5373]

This is a zoning problem. and it's created by the municipality, not the nation. Build your house in a neighborhood business or mixed use zone.

[@heatherswanson1664]

The problem is North America is pretty much exclusively built on the single use zones.

[@SherrifOfNottingham]

Fun fact about Houston... The reason you can't sell street food from your house has nothing to do with the law, as there's no city held zoning laws, the problem is that HOA's and residential developments have their own rules built into that specific community.

[@zjzr08]

Here in the Philippines, we have "sari-sari" stores, which are household convenience stores that you don't need to go out to the main road to get to busy convenience stores like 7-Eleven to buy arguably more expensive items; easy to buy pieces, rather than bulks (which retailers who do sell, do) -- wonder how many other countries do this.

[@vaiyaktikasolarbeam1906]

@@zjzr08 I think SE Asian countries and India have similiar stores

[@devdixit2440]

Last time I was this early, triple +AAA rated mortgage bonds only had +AAA mortgages in them.

[@tackontitan]

Damn, that's early

[@hellfun1337]

@@리주민 I think it only goes down to B

[@reneroux2391]

@@리주민 watch the big short

[@officialgamingmusify]

리주민 nope it goes all the way down to junk bonds which are usually debts that have little to no chance of being repaid

[@nurainiarsad7395]

Fundamentally the difference between the two systems is that the interest-avoiding one forces capital lenders to have skin in the game and risk consequences.

[@Sphere723]

No, that is not a fundamental difference. If someone defaults on a traditional interest bearing loan, whoever holds the loan isn't somehow guaranteed to re-coup even the principle, much less the interest owed.

[@jasonlin1013]

@@Sphere723 not true, remember when banks were bailed out?

[@KJ-od8wq]

@@jasonlin1013 the “bailout” that were loans that the companies had to pay back?

[@masterofpureawesome]

Mr Nook: The Bells, hand them over

[@riyvk]

*points gun at you* Your Liver, hand it over

[@jamescanjuggle]

Mr Nook: Those bells you got there better be for me, Toss Boy. Trigger fingers been twitchy all week and it be a shame to lose those knee caps of yours if I were to slip.

[@Pi-Face]

Send in the raccoon goons!

[@chancellorpalpatine7486]

Americans: So the average net worth for all ages under 30 is now negative. That won’t have any unintended consequences.

[@drjp4212]

It's just how it works currently. Debt/leverage is like steroids: short term boom and long term crash. It isn't a "inherent Capitalism feature" as proposed by Marx, in the end.

[@remasteredzero4076]

@@drjp4212 its a band-aid to keep the system running, but in the end it is just delaying the inevitable

[@jackdeniston9326]

Has been this way for hundreds of years

[@Dr_Bille]

@@jackdeniston9326 So what? That doesn't mean it's a good system, or even sustainable. I think it's fairly obvious the current system cannot last forever, which a system a society is built on should be able to. It might last a few hundred years more, but eventually, it will all come crashing down, guaranteed

[@-haclong2366]

@@drjp4212 will happen, though.

[@joaovitormatos8147]

COVID: happens EE: *[goes into a monetarist rabbit hole]*

[@stevencooper4422]

FOLLOW THE YELLOW BRICK ROAD

[@TV-mn1zd]

lol

[@robertmiller6444]

Was thinking the same thing. What happened - he used to get it right and make so much sense. Monetarism is just mercantilism 2.0.

[@Ivanfpcs]

I'm LOVING it!!! I never though so much about debt before this videos!

[@blacksnow7106]

isn't most of us go into a rabbit hole? isn't that why the conspiracy theorists are going wild?

[@mulllhausen]

Re: housing - you should have talked about how someone on a teacher's salary in the 1950s used to be able to buy a house outright after saving for something like 4 years.

[@l30588]

Gotta remember how many people there were in 1950 vs today, way more demand for housing

[@mulllhausen]

​@@l30588 house prices have tripled since 2000 in the uk for example. and around the western world house prices have at least doubled since 2000. the population has not tripled or doubled since 2000 though. www.mansionglobal.com/articles/u-k-home-prices-tripled-in-two-decades-210729 >To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble. www.nytimes.com/2002/08/02/opinion/dubya-s-double-dip.html

[@bprosperie]

My grandparents paid $600 for a nice 3 bedroom, 2 bathroom house.

[@DiscoFang]

@@mulllhausen Cash house price is a red herring. As pointed out in this video, access to debt on a tangible asset is how we buy that roof over out head. And as pointed out in the first comment of the this thread, it's been that way since the 60's and 70's. Houses were already "unaffordable" in cash terms in the 2000s and a 20-30 year mortgage was fairly typical. Mortgage interest rates since 2000 have plummeted (the base rate from 6% down to 0.5%, actual fixed rates from 8-9% down to 2-3%) and the same 20-30 year loans are the norm.

[@mulllhausen]

@@DiscoFang credit and low interest rates are the direct cause of high house prices

[@benjaminbrand60]

“Is there such a thing as good debt?” *Dave Ramsey has entered the chat*

[@chrisbrown6168]

What's your monthly income?

[@MrTripleAgamer]

That's what I was thinking ! Love Dave 👍

[@brycecaulkins7662]

Even Dave Ramsey allows for a mortgage...

[@jmitterii2]

@@brycecaulkins7662 That's because he has a house to sell to you, and if he's not selling that house to you, he's depending you being a ding bat bidding that house up so his house is sold just as high if not higher. :) Dave is a biggest swindler going to the churches to peddle is gimmick. What a great guy. Laughs his behind all the way to the bank.

[@MK_ULTRA420]

@@jmitterii2 R I C E A N D B E A N S

[@saminyead1233]

Thank you so much for addressing Islamic finances here! I am a Muslim, and I myself struggled for quite a while how Islamic finances work (I'm not a finance student anyway). Now, thanks to your video, I understand the merits! Allah bless you!

[@mog7501]

For some reason, the more I watch and learn from this channel, the more depressed and frustrated I get about how the world is run. I don't think this was the intended side effect but for some reason I can't not think this way anymore. Great content btw!

[@kylepongos4532]

That's just the nature of the beast. The fundamental principle of economics is "unlimited wants from limited resources."

[@JackRackam]

I have to say, I love these speculative mometary theory videos. I'm not always sold on everything you present, but I love that you're presenting new ways to think about money that had never occured to me before

[@artski09]

you going to do a video about some crazy banker or merchant?

[@tisFrancesfault]

As a point Europe always had banking, and Islamic Banking isn't actually new to the west, we just call them hedge funds these days.

[@duo496]

Economics of stock footage day 3

[@EconomicsExplained]

doing my part for the stock footage creators

[@Jegria]

@@EconomicsExplained It's my favourite part of your videos. My life wouldn't be the same without them!

[@xerogue]

do you know where they are sourced?

[@perpotet4629]

We need this.

[@Jessie_Helms]

The part about housing is exactly what’s wrong with college loans. Most people could afford college back when the only way to get in was to pay for it, now that just about anyone can go to college for just about any degree and go into debt.

[@eriksvensson2098]

Same as the housing crisis just a different subject.

[@alegekelso]

This could also be carried over to healthcare

[@AnishJBhave]

However unlike a house a college education can actually be economically beneficial in the long run

[@stafer3]

“Most people could afford college back when the only way to get in was to pay for it” If most people could afford it then, why more people has it now? Percentage of college graduates in US 1940 - 4,6% 1950 - 6,2% 1965 - 9,4% 1975 - 13,9% 1980 - 17% 1990 - 21,3% 2000 - 25,6% 2010 - 29,9% 2015 - 32,5% 2019 - 36%

[@huguesjouffrai9618]

@@AnishJBhave wtf, a house provides shelter for a whole family for a very long time: do you really think that this doesn't have economic value? Of course it has. And when you stop living in it you can still rent it and it will provide a steady income (just like your college education: both are investments)

[@halvey8518]

8:30 "No hate still love ya Graham” What a great example by showing us our personal real estate mogul😂

[@jeremygibbs7342]

I wish there was a debt class in junior high and high school. I only had a ...two week lesson? It is so complex and vast that a whole semester should be spent on learning this stuff

[@hpdpco6634]

So an islamic bank is like a holdings company? And if you are a depositor, you are actually an investor in a holdings company. So its actually owning a stock. Not much different from investing in the stock market where you own shares of the company.

[@budi5361]

Yup, more or less that's how islamic banking works. However they won't invest to bussines that considered haram like alcohol, tobacco, gambling, etc. And there is a symbolic oath that you have take before you take 'loan' from islamic banking, it's like you are swearing that the money you got will only use for something good. Pretty much a good idea

[@hpdpco6634]

@@budi5361 i love the idea! I would love to invest in an islamic bank even if im not muslim.

[@budi5361]

@@hpdpco6634 well yeah, all the islamic banks that i know welcome everyone regardless of their beliefs.

[@vengefulavenger3998]

@@hpdpco6634 try gatehouse bank in the UK

[@tisFrancesfault]

The hedge fund is basically the same concept, but everyone hates them. **Shrugs**

[@evlee1295]

"wait, it's all debt?" "always had been 🔫"

[@sebastiaosilva886]

I would love to see your take on Government debt, like the case of Portugal and the impacts of too much out of control government debt

[@greenprofile5755]

lebanon: *sweating intensifies*

[@wednesdayaddams7033]

*greece entered the chat*

[@renchesandsords]

I think one way of thinking of debt is desperately jumping into a well to get water, after the water is gone, you can either climb out and try to look for another source or just dig yourself deeper

[@ForgottenLore]

If only i was this early for my actual economics class. :)

[@EconomicsExplained]

eh well if it makes you feel any better at least you won't get stared at for showing up in you pyjamas anymore.

[@ForgottenLore]

@@EconomicsExplained :D

[@qn5947]

Don't fall victim to be a debt slave. Having no debt, you will sleep better at night. Debts will lead to stress and will take a toll on your health and mental stability.

[@jadefalcon001]

Without debt I wouldn't have been able to hang on to my family home after my relatives living there died. I'm sleeping quite well at night knowing that that home stays in the family thanks to a 30-year mortgage. Don't insist that what works for you is universal. It isn't.

[@parthasarathyvenkatadri]

@@jadefalcon001 I don't understand how does that work ... Shouldn't your family home be yours to begin with .. without any debt ....

[@Parcian-]

@@jadefalcon001 If you are indebted, this house is not yours. You just think it is.

[@mrmeseeks8790]

Debt itself is a mental state, not for every limpy sissy Tom.

[@shriekinleada794]

jadefalcon001 lmao the bank owns the home mate, not you

[@ozzyfromspace]

7:10 (rough transcript) “Most people in developed cities don’t have enough money to just buy homes, and if you do... hey, how ya doin”? Patreon link in the description” 😂😂😂😂😂 I love this guy

[@renxy548]

Money is so outdated. In 2100, we trade bottle caps

[@wigglebot2368]

RIP

[@stonie658]

They will be hard to come by, just like money.

[@physe8052]

[New Vegas intensifies]

[@jaioxung]

A very succinct and accurate explination of debt I once heard was "stealing value from the future and using it today". When you sign a loan for something you are literally robbing your future self...feels quite different when you think of it that way.

[@jesseteixeira6284]

People talk about 'living within your means'. As far as I'm concerned, that means maintaining zero debt. Debt in itself was designed initially as a means to extend the purchasing power of the average person. However, history has shown that debt is addictive and often becomes so extensive that many cultures have written laws requiring periods of debt forgiveness to prevent the formation of insurmountable instability in the economic system. To have debt is to live beyond your means. To pursue the furtherance of debt is to destabilize the pillars of society. When inequality grows, society suffers and decays. Also, this argument is predicated on the necessity of landlords and treating things like housing as a private commodity. As he admits, housing is a vital good. If you don't have a home, you are vastly more likely to die of exposure. Basic health and housing should be treated as a right. Being a landlord is not a job, and should never be classified as one. Landlords are not a necessity. They can be replaced by community organizations like housing associations, which are more open to hearing your problems as long as you participate. Democracy is a good thing, and I honestly don't understand why people prefer living under what essentially amounts to micro-monarchy in the form of landlords. Now granted, I'm not saying we should socialize all housing; if someone wants to build a McMansion, they can go do that and sell it for whatever they want. But unless there is a metaphorical floor underneath people if they fall on hard times, then essentially you are condemning anyone with bad luck to an early grave. Everyone should be entitled to basic access to healthcare (doesn't even have to be the best healthcare, just enough that they don't die bankrupt), basic housing (again, doesn't have to be the best, but enough that they don't die of exposure), etc. It baffles me that basic human dignity in this form is so seldom taken seriously.

[@semeeson]

MOstly agree here. Important to note is that personal good financial habits dont really connect to business or state level economic decisions, they play a whole different ball game.

[@9justify]

Stop arguing that housing is a human right,we needs alot of things to live and be productive.food medicine housing education are all essential to live a healthy and productive life,so where does the line stop,should goverment give free healthcare,housing,education food aka nationalize all those industry?doing that would not only mean goverment is responsible for providing those stuff,but also everyone will be working for the goverment.The state owns all the industries and is responsible for providing all the needs of the people,does that sound familiar?let me remind you soviet union collapsed from this state run economy,or the stories that it takes years to even ballot and get a lousy designed car from the state in yugoslavia

[@DavidFernandez-od4fz]

Problem here is that the average person is incredibly uneducated and irresponsible with their money. “Landlords are not a necessity” is a faulty claim given that many people need to rent because they don’t have enough to buy; the problem of the landlord is one more of emotivity than practicality, just because people dislike them doesn’t mean they’re useless. With regards to basic access to healthcare, most first world countries have healthcare that is the greatest compared to the rest of the world. As for the basic housing, it should be a right, but if you don’t work, the government shouldn’t have to house you (unless you are deeply sick or unable), it just isn’t the taxpayer’s responsibility (and that’s who it typically falls under). The concept of the “community” is dead; at least in America, where there is little to connect the most ethnically diverse country on the planet beyond money. Companionship and camaraderie die when you have little in common with the guy next to you.

[@pillmuncher67]

No. Informal debt was how the economy worked in the neolithic and the early bronze age. Itr went something like this: "That's a nice cow you have there, neighbor!" - "Oh, you like it? Just take her, don't bother giving me something back, after all we're neighbors and love each other!" - now he owes you one. Three months later you walk up to him and say "Well, my son is really in love with your daughter...". Money was just a formalization and consolidation of that. The oldest money-like things we've found were IOUs, in Mesopotamia. Coins came about around 1,000 to 1,200 years later. As it turns out, they were invented as a tool in warfare. Look up David Graeber, he explains it.

[@Origami84]

@@pillmuncher67 Lol at this, Pillmuncher. We don't know much about the neolithic, but the holes in the skull that we found - and the obvious scarcity or resource they must had combined with human nature - makes it much more likely that they guarded what little they had jealously and violently, because it was full of robbers more than ready to take it by force.

[@yungcripple]

Me: Assumes Economics Explained: ASHUMES

[@TheHellogs4444]

It's usually azzumes, spelled assumes even though it sounds nothing like ace-umes

[@xandercorp6175]

@@TheHellogs4444 None of the major English-speaking countries pronounce it "azzumes". This is not entirely your fault, as you are simply repeating a mispronunciation; but in the modern era where information is freely available, there is no reason you could not find out one of the proper pronunciations.

[@qubex]

Islamic banking maintains “skin in the game” for the originators, to use Nassim Taleb’s terminology.

[@vengefulavenger3998]

@marios gianopoulos they have charity for the poor as well

[@khrashingphantom9632]

James Junghanns True because the belief is that interest "makes a person a slave".

[@vengefulavenger3998]

@@리주민 Regardless of your religion, equity banking is an idea for everyone. (Except for the criminal banksters running our country of course).

[@robertmiller6444]

@marios gianopoulos No, they just disallow the use of the word "usury". They just go through complex machinations to make it look like usury isn't involved when it really is, it's just hidden and called something different. The simple reality is, no one is going to give up their use of their money and hand it over to you, at _their risk_ without something in return for that loss of use and incurring of risk. Why do people think that they are somehow owed the use of other people's money for free?

[@earlh]

They also charge higher rates than a normal bank would, so in practice you end up paying about the same if not more using their "interest-free" mortgage system.

[@exPrimer13]

I must say man, I am not an economist by any stretch but all of this has been very fascinating to me recently. I had watched your videos in the past, but it wasn't until this crisis that I really started to dive in and research it. Your videos have been an invaluable tool to me to getting a better understanding of our society. Thank you for the effort you put in.

[@user-tl5ec2po1b]

I wonder if the underground reptile societies use debt just like us?

[@olli9764]

No, they live in perfect communism

[@ogorangeduck]

they secretly control all the debt and money in the world

[@bazookapower88]

Anthony Kruna we usually just steal from you guys whenever we need something. Like no one notices when you buy a 3.52 bag of flammen hots and get my boi Vinny to just say that you bought them.

[@TV-mn1zd]

Maybe

[@user-tl5ec2po1b]

@@olli9764 You speaking from experience comrade reptile?

[@ahmedhosny2412]

Thank you very much for this explanation. I am a muslim and never understood islamic banking until now. You are absolutely brilliant.

[@caesx6537]

If anyone is interested the music at the beginning was Trans Siberian Express - Luella Gren

[@brokkrep]

Thx

[@elliottmiller3282]

I wrote a long af document about why debt isn't just unnecessary but it is morally wrong. But there are four central ideas. - Debt is not necessary to actually purchase anything. - Debt can only make purchases more expensive - Debt does not necessarily increase wealth - Debt significantly encourages you to make bad decisions. Personally, I have been debt free for several years now. It is entirely possible to live this way. And it definitely is a pretty awesome way of living. I am thoroughly convinced , on an individual level, you don't need debt for anything. We just use debt to get the things we think we want slightly sooner at a significantly higher cost. You also don't need debt to fund businesses as that can be done with equity.

[@katyoutnabout5943]

7:23 well done. Smooth AF

[@ratatataraxia]

Never had money, never plan to. Still one of my favorite channels.

[@crimsonfury949]

Pay your bells or Tom Nooke will break your god damn kneecaps kids.

[@stevencooper4422]

Wait! Please! I have a family!

[@TV-mn1zd]

lol

[@Mythhammer]

The Bells toll for thee... ^^

[@mrmeseeks8790]

I ain't afraid....

[@danaziz1675]

That patron advertisement was just so smoothly added. Well played good sir

[@25usd94]

Leverage is a tool, like a saw. It's the users choice whether to cut a tree or saw your arm off

[@jadepenn7407]

Make a dangerous tool safer and still performs the task well

[@bersah4517]

Very well said 25 $

[@apricotcomputers3943]

Yep

[@rashkavar]

Leverage is the chainsaw of the financial world: Swing it carefully in measured amounts, you get a LOT done. Play around like it's a lightsaber, and someone loses an arm and a leg.

[@Acid31337]

Better not to give any extra tool to politicians.

[@Asianiels]

This is why I don't understand a lot of countries that mainly use their creditcard. In the Netherlands almost everyone uses their debitcard for store purchases, that way you can only spend what you have instead of getting a monthly creditcard bill. It almost completely erases the "bad" debt.

[@jamespungello8361]

Re: Mortgages. If we stopped allowing people to finance homes then the home prices might go down but wouldn't the rent prices skyrocket with all the new demand for rentals? Would that still be better?

[@vengefulavenger3998]

Rents couldn't skyrocket more than than the house price. So I guess the question is how much would the house prices collapse? 80%? 90%?

[@georgeilynch2303]

Higher rents= Higher value for the infrastructure = More building = Equilibrium (without debt)

[@jamespungello8361]

@@vengefulavenger3998 Depends on the timeframe you're talking about. If you mean monthly payments then yeah but that's a huge gap between home price and current monthly rent (ie lots of runway for increased prices). Plus it doesn't really matter what the rent is if you can't purchase until you have 100% of the cash since you're given no option, you have to live somewhere.

[@jamespungello8361]

@@georgeilynch2303 But what about areas where they can't build enough to keep up with that? Wouldn't that also drive house prices up as the higher value as a rental property attracts investors with deep pockets?

[@sedatmehmed4371]

@@jamespungello8361 People will start moving someone else. You can't expect that the demand will be infinite for some area. After the rents skyrocket beyond certain level, workers will move somewhere else, where rentals are lower and create the next population center there. Also you are forgetting that if debt doesn't exist at all financial sector will not exist at all, so who will buy a lot of houses?

[@adventureshark631]

I watched this and kept thinking - so what so what so what, we can't go back. Then you came to your final thoughts...I was plesently surprised. If more people watched this and took it to heart it could actually help them. Thanks and I am glad I made it through the end.

[@nathanalexander-leduc9168]

Economics Explained: Do we actually need debt? Dave Ramsey: No.

[@ricecake1228]

Everybody except economists: No

[@olivercuenca4109]

@@OneUndOnlee Good debt only seems like good debt if you presume that the present will always be like the future.

[@eligrobin3815]

I am surprised you didn't mention consumption smoothing in this video. It is essentially the purpose that consumer debt serves in an economy. With no debt, you have to live in a slum for 20 years to afford a house. But with debt, you get to immediately get the benefit of the house, but you have to pay it off for 30 years. The problem with too much debt is that we have allocated more consumption to now than we can actually afford. We borrow as if there are always better times ahead, and yet sometimes there are bad times ahead.

[@JonnesTT]

Me a good german boi: I'm in university, I have to have at least 6 months of rent on my hands. Americans: I'm only 2 monthly salaries in, nah, I'm fine. That said, being raised by someone who's living in a "never take out a loan" mindset did give me anxious reactions every time I buy something big ._. So, maybe not so good.

[@wumi2419]

My parents and I don't buy a lot of "luxury" items, so there's a lot of money left every month. But sometimes huge spending happens and savings from few years are gone, but events like this are basically once in a lifetime spending

[@rwatertree]

When I was a kid I was so afraid of buyer's remorse that I saved nearly all of my allowance. It helped pay for my university books so it worked out okay.

[@tuomio5043]

@@rwatertree I did this but with a car.

[@portellio_the_space_rider9473]

My flatmate just moved out and took the TV. I went shopping to get a new one and then got stressed out about how much it would actualy cost. I don't have a TV...

[@justin_time]

Germany tried to take over Europe twice by war and failed. Now it has the largest economy in Europe and is one of the largest in the world. Turns out the wars were never needed to conquer, just sound economic policy. Germany, playing the long game. The third time is the charm! Here we go - round 3! Leeeeeeeerrrrrrroooooooyyyyyyy Jenkiiiiiiiiiiiiinnnnnnnnnnnsssssssss!!!!!!!!!!!!!!!!

[@DilupthaPerera]

"Houses are not productive assets." This was eye-opening to hear, and eloquently summarised an idea that I'd been kicking around in my head for a while. It's the single biggest reason I've steered clear of Australian real estate, and have instead tried to purchase undervalued equities. Thank you for sharing your insights. This is quickly turning into one of my favourite channels on KZbin (I've just subscribed!).

[@modernalchemist2690]

If it generates money, it's a asset.

[@621Tomcat]

Goddammit handsome sounding Australian man. I was going to sleep in my screwed up sleep schedule. Now I’m getting educated.

[@sklitterbeer106]

I'd let EE hold me and sing me a lullaby

[@stooge_mobile]

Dude I was trying to be productive. My man, you release videos so often I can't even let the profound implications of the last one sink in before there's a new one. Loving the content!

[@BusinessMadhouse]

Awesome video! Been following you and your work has inspired me to start my own channel!

[@sanketbajaj4641]

some good content you've got chaotic finance

[@sejalchandak8060]

Chaotic Finance awesome !

[@surajkasat7251]

Great work mate. Saw your video. Keep it up! Stay motivated

[@ritwiksen868]

Very well Have just subbe

[@fitez7205]

Loved your channel! Breaking down the basics! Much needed!

[@Gabriel.4190]

Debt is a relationship that ties you down, and leaves you unhappy. If you don’t satisfy your obligation to it, it’ll ruin your life. Debt ties you to job you hate. That’s short lived feeling of success is gone months later and you still owe $700 a month for the Mortage. Debt isn’t good for anyone who wishes to succeed past middle America.

[@Jose-lc6nj]

According to the us debt clock today april 19 2020 there are 439700$ of assets per citizen But at the same time 438485$ of liabilities per citizen This means the the American economy has almost the same amount of debt as it has of assets with a difference of only 1215$ That difference was over 10k two months ago The fiat system is about to collapse sooner than we think

[@BrandonshanesProductions]

If the fiat system ends you are not gonna have a good time and if it ends the government probably isnt gonna switch to gold and stuff because its not practical

[@P3RF3CTD3ATH]

@@Ali-gh7rj yeah because a totally decentrilized currency that fluctuates like crazy is a great idea for countries to base their economy on.

[@therealpotatomottz8706]

Oh boy. Let's hope this acts as a wake up call to the government, but who am I kidding. A pandemic won't even do that

[@dortoka]

Debt isn't evil, interest/usury is. And that is what is destroying our society

[@hamstersmailman5517]

@2:00 is my favorite use of stock footage to date

[@Elliandr]

My definition of good debt is simpler. Does it either reduce my expenses or increase my earnings? If it does the debt is good. If not it's bad. Back when I rented a home I remember spending over $600 a month. However, my mortgage is $411 a month. And that's a 10-year mortgage, not a 30-year. With homeowners insurance and property taxes that comes to around $460 a month. So, a significant savings. Of course, there are occasional repairs, but in general by the time I have to do any major expenses again the mortgage will be paid off. That means that even factoring in the fact that I have to spend that money myself I'm still spending less money than I otherwise would. In fact, I'm even protected against hyperinflation because a rental property would probably see its rates go up over time whereas a mortgage with a fixed interest rate is based on a fixed loan. Regardless of what happens to the economy my costs are the same. Now, here's another good example. Energy. My energy bill averages around $400 a month. Sometimes it's as high as six hundred and other times it's as low as two hundred but that's the average. Now, if I could borrow money to install solar panels and or wind turbines and if the cost of installing and running such a system over its lifetime is lower than the money I would otherwise be paying the utility that's a good debt in my opinion. These cases are very different from the examples given in the video though. In general, most debt is bad in my opinion. Having a large number of debt means that over time the debt becomes worse just like having a large number of assets mean that over time those assets get better. Unless those debts are guaranteed to improve your financial situation it's just not a good idea.

[@Palatineoffacts]

@5:35 is this a personal attack against me?

[@EconomicsExplained]

Yes!

[@hurgcat]

protip: move to asia instead of living in your folks basement, its cheaper and the food tastes better

[@alezacrespublik6655]

@@hurgcat Just avoid Urban East Asia, the price is insane there

[@Palatineoffacts]

@@hurgcat im already in india lol

[@jasonavant7470]

Money is a medium of exchange and one its goals is to extinguish debt for the things that people need and want. If all debt was extinguished then there would be no need for money because all the needs and wants of everyone would be met. There will always be debt because people always need and want things. Not having self control over your wants versus your needs are how you end up in a large amount of debt.

[@googlechromulent2049]

If money can't buy happiness, I guess I'll have to rent it. :D

[@aarongold7220]

What do you mean realestate investors own most of the market? About a third of occupied homes are owned by a landlord. the other two thirds are occupied by the home owner. The majority of unoccupied homes are owned by banks who foreclosed on either a homeowner or rental property. Like sure landlords own a lot of property. But it's not the majority and we still have millions of vacant homes.

[@attalan8732]

This was a very good video, but I was wondering if we could get more microeconomic videos in the future? Microeconomics are the building blocks of the economy but macroeconomics gets all the credit.

[@manishm9478]

I keep coming back to this video to refresh myself on your points. Really interesting perspective you give here, and very different to the mainstream narrative around money and debt!

[@rodylermglez]

Debt is like running on gas that you will put on your car next month.

[@kunyang2648]

One thing I don't understand someone helps me out here, if builder don't build new homes because of falling house price, eventually limited supply of house will force price to pick up again, making building house more profitable again, no?

[@TheMr77469]

I always wondered how non interest charging banks functioned. Thanks!

[@reignandbongao9497]

I was to have my first Economics class of my life this semester when it was abruptly ended with the global pandemic. As the lazy student I am, I went awol on all of the online classes of my subjects that are not my major. But I legitimately think I learned more in binging this channel than I would have if the semester played out like it should've. This gave me the insight of my ponderous question about the nature of debt I asked to my professor the our first meeting. Great video as always!

[@mohammadnazieh6700]

As someone living in a country with a 'Debt-Free' economy, I rather disagree with your assessment. Although we kind of have banks that lend with interest, dealing with them is heavily stigmatized, due to religious reasons. The problem is that the banks are too weak, since very few people put their money in the banks, so the banks are heavily under funded, which makes them far too conservative, which cripples innovation, very few people can get loans to start businesses, the central bank can't just print all the money they want, as this is not America, print too much money, all foreign investment leaves the country. Using the farm analogy, a farmer cannot get a loan to buy a water pump, which significantly increases their productivity, instead they'll have to farm ineffeciently for some time, in order to save up for said pump, so the farmer is not as productive as they could've been, which is bad for the economy , apply that logic to the rest of the economy, and the economy is vastly underperforming. not to mention how hard this makes social mobility, since you can't get student loans, if you can't afford to go to college, you don't go to college, as a result rich people who can afford to pay for their children's education usually buy up all the seats in lucrative professions, medicine for example, but the poor cannot afford them, even if the not-so-well-off kid was vastly more qualified than the well off kids, they still won't be able to pursue degrees with lucrative careers, the rich remain rich, the poor remain poor, and the cycle continues. I'd prefer a 'Debt-Full' economy that crashes every now and then to this dysfunctional 'Debt-Free' economy, as long as the banks lend money responsibly, and not just to any human with a pulse, everything will be fine.

[@nlb137]

Exactly. Even housing is that way. If you have to "save up" to buy a house outright, you're stuck paying rent in the meantime. Lets say I'm buying a house for $200k, with a payment of $600/mo for 30 years. If I have to save up to drop the $200k outright, that requires saving $600/mo for almost 15 years (and inflation will make it even worse than that). Even if we assume that debt-buying drives up prices, the situation still sucks. Pretend the same house would cost only $50k, and that inflation would drive up the price in the time it takes you to save up (both incredibly favorable assumptions for the nodebt argument). The problem is that you still have to live *somewhere*. So lets say you manage to find a place that you can rent for only *$300/mo*. That reduces the amount you can save from the $600/mo you'd otherwise be paying for the house to half that. It would still take *15 years* to save up enough to buy a house with those numbers... and you'll have pissed away about as much on rent as the interest would have been on the loan for the 'real' $200k house.

[@BurriedTruth]

Reminds of Richard Werner’s interview about credit creation, he basically told it can be a good instrument as long as it is used for productive purposes and not given for speculation, as EE points out “if there were no mortgage loans , demand will be lower due to the inability to use loans to purchase houses which would cause a drop in prices”, we need more of Professor’s Werner’s type in government if we want to fix the failing financial system we are in currently.

[@dexzero]

LMAO the stock images are hilarious

[@seanbirtwistle649]

you know those flaming roses were for valentines day

[@_--9286]

2:01

[@dexzero]

@@_--9286 exactly :D

[@idromano]

and a little distracting

[@TenHorizons]

I wrote off your idea of a debt free society at the start of the video, but when you introduced capital reallocation, it suddenly makes complete sense. Indeed, I see a debt free society as the way to go provided that capital reallocation becomes the new norm. Entrepreneurs will have to be able to market their ideas and answer people's questions to get a loan, which I think is needed, and not just simply get a loan.

[@huseinnashr]

15:43 Last time i was this early plasma tvs were still a thing

[@hairohukosu433]

"We are the economy of making tomorrow pay for it." Losing my fucking mind over how good this quote is

[@provolone5336]

U.S banks: we pay you interest on your savings account Other banks: you are a shareholder 😎

[@sebastiandevida4685]

"the idea of ones potential not being limitated by what money one has is a liberating idea" yeah we have been saying that for centuries

[@chris0000924]

11:06 grossly incorrect. It forbids usury(predatory lending) not banking which always existed in one way or another

[@zahzuhzay6533]

I took a class in the history of economic thpught so this part bothered me with its gross generalization. In fact ususry was legitimized by changes in interest taking in non predatory relationships and yes some pragmatism. Also, medival scholastics such as St.Thomas Aqunias argued interest in certain circumstances are good. In the class we learned how the doctrine of usury was slowly poked at until the whole thongs unraveled.

[@craigthebrute2409]

It doesn’t forbid usury. It forbids riba.

[@0121chuchurocket]

where I live it's weeks of wait to get someone to come to do the drywall/fences/plumping/cabinets, etc. Same with construction, if you want to build a guest suite in your back yard it's months of wait, so saying that housing is non-productive is simply not true, if anything housing related jobs are under-staffed

[@ufhb6649]

Tom Nook as thumbnail, golden

[@riarising8630]

@7:23 what a subtle plug in

[@chrisbrown6168]

7:00 "when the alternative is living on the street, or worse, living with your inlaws" 😂🤣

[@crimpykrimperoon]

Why'd you punch Rihanna?

[@AliHSyed]

Dude, like sincerely thank you for posting so much. 🙏

[@declantracy2497]

Does all of your revenue go towards all of this stock footage?

[@EconomicsExplained]

Yes

[@declantracy2497]

@@EconomicsExplained I'm gonna take this as financial advice to spend my savings on stock footage.

[@SardineBreath28]

Economics Explained invests in Stock footage, not stock markets now

[@funksboxingchannel996]

The cost of the farm would simply be cheeper if there was less access credit. Why does everyone think that property is so ridiculously expensive and practically beyond what the average person can pay for? Credit is what allows property to be artificially inflated.

[@Faisal-st6hl]

I was thinking the same why all religions have banned instrest And how will the economy go without intrest You forgot something I guess when people will save money to buy a home rather keeping it in a piggy bank they would try to invest it in equity and ipo makets can easily raise money and it will also grow economy on faster rate And can you make a video on islamic economy zakat system plz

[@vengefulavenger3998]

@@xunqianbaidu6917 equity financing is about profit & loss sharing. It's more akin to venture capital. Debt financing just isn't.

[@pojkeee]

Your videos are more educational than online school also its great that your Aussie, all these blokes online are from the states it’s good to have someone to watch from the same country keep up the great videos

[@mookosh]

I disagree. Your entire segment on the Islamic mortgage was totally backwards. The fact that you don't recognize the transaction as being effectively identical to a mortgage is kind of surprising to me given your strong understand of economics. I actually have my own revolutionary ideas that landlords are entirely unnecessary, the complete opposite of the position you express around 12:30. See, I look at landlords and I think "If a tenant can pay rent for 40 years to pay off their landlord's mortgage... why do we need the landlord, why aren't banks just giving the mortgage directly to tenants?" The structure of mortgages which you glossed over was just how LARGE deposits need to be. It's not 5,000 dollars or even 20,000 dollars. If you want financing for your half million dollar home purchase, you better provide 100 grand up front. This is a gating mechanism to prevent smaller market participants from having access to financing which is horrifying when you think of how it perverts the market to give those with wealth a huge advantage over the average person. But that's a completely different video which I encourage you to explore since the disparity created by who can get loans and get loans at different rates is really the Matthew Principal incarnate. But returning to the issue I had with your islamic banking example, a mortgage is identical to their transactional method. A mortgage is french for "dead title". What it means is that technically the bank owns legal title to your home. You make an agreement to pay rent to the bank (mortgage payments) and at the end of your payment term, you obtain the legal title held by the bank. Your islamic example in your own words was "the bank buys a home where it sees potential and you make a deal. You pay rent for X amount of years and at the end of the term you get the home". That's just a mortgage! It's not as if the rent represents the exact amount of money that the home costed considering inflation - Islamic banks charge rent like any other landlord, meaning they can charge a higher amount than the actual value of the home they bought. Further, while it may be frowned upon to give loans, I'm not sure it's frowned upon to take loans. I am actually ignorant to this particular nuance, but if Islamic banks actually DO have the ability to take out loans for themselves - then that means they can take out a mortgage to buy the home they charge you rent on to inhabit. They literally just act as landlords which is objectively worse than just being a financer. Now, you may ask "why do landlords exist if they're unnecessary"? Well, perhaps unnecessary is the wrong word. The benefits of landlords, much like the benefits of automation, simple accumulate in the hands of a small group rather than society as a whole. Landlords provide financers with a stable entity with lots of assets you can pursue on a default. If Joe Shmoe defaults on his home mortgage, the bank is in trouble because his only asset of value was that home. If the bank cannot recover what it lent on the home by way of power of sale - they just lost money. But with an institutional landlord, you can create guarantors and additional liabilities on default to ensure that if the equity found in the mortgage is insufficient, other assets of the larger company may be pursued to satisfy the debt. Landlords exist because they make life easier for banks at the cost of making life harder for tenants. Islamic banking is just doubling down on this system. Debt isn't the problem - predatory debt structures are the problem. The bank is stuck with a home if the tenants ditch it? That's comedy. This bank gets a foreclosure without having to pay legals on enforcement and can sell the home for at least as much as they paid for it if the tenants move out and get to pocket the rent they charged as gravy! Debt has a purpose. Like almost all things, it works well in moderation with a capital M. You need to have responsible, transparent, multi-layered, regulatory bodies ensuring that the financial sector is kept from spiraling into get rich quick schemes via debt structures with zero concrete value. Removing debt completely is sort of like choosing not to explore the utility of fire because fire, when mishandled, can kill you, burn down forests, and destroy everything you ever loved. Fire can do all those things, but fire is also the most critical tool in human history which has ever existed. It is the foundation of modern civilization. We tamed it and while it still burns us sometimes, the value we derive from fire far outweighs its cost. The question isn't whether we could make a society without debt, but whether it's more optimal to make a society with debt given the correct conditions and how we might achieve those conditions.

[@boredinlecture]

You've hit the nail on the head with Islamic Banking. Islamic banking is just set up to skirt around the rules of Islam by changing the words in a contract. Whats to stop an islamic bank from "investing" in a property which is dodgy on the basis that the "renter" will probably pay enough for them to make a profit? The exact same rules apply to an islamic bank as they do a normal bank. There is nothing stopping a normal bank from rejecting your loan application on the basis they don't believe its a sound investment, that will be an active risk they will take account of during the loan application in case of a mortgage default.

[@habeebaelwalily3081]

You aren't keeping in mind the fact that in islamic banking, you own whatever percentage of the property value you have paid. So if there is a $100,000 home that the person trying to buy pays $25,000 over a year, they own %25 percent of the property. This would make a great incentive to not ditch the property and leave the bank to handle it because you partly own it.

[@boredinlecture]

Habeeba Elwalily I don’t see what difference that makes. It’s never in your interest to default because it will do almost irreparable damage to your credit rating.

[@mookosh]

@@habeebaelwalily3081 source me on your claim. That isn't what was mentioned in the video, but it's possible EE didn't explain the concept in enough depth. Can you give us a source which might give us more depth?

[@mookosh]

@@boredinlecture I'm actually very strongly opposed to the content of this video lol Normally I like EE's take on things, but I'm a lawyer specifically in the field of corporate finance and this video is a very... Skewed perspective I'd say. It feels like EE was trying to answer a thought experiment "could we exist without debt" then pitched a controversial argument for "why debt is bad" to make a vid with lots of engagement... But you really cannot just mention that the reason we have so much debt is because wars are expensive without concluding that... Debt is essential... Wars didn't become less expensive. International competition still demands rapid growth and debt leverage is how you maximize your growth in the short term to keep ahead of your opponents. So long as there is competition, debt will exist to feed it.

[@subrotoxing8214]

This may be your best video thus FAR... syariah banking and why it makes sense

[@jarehelt]

Gold is money. Dollars are debt

[@MqBuffon]

5:35 Literally me

[@guendouzakrem1505]

I don't know if this is relevant but in Islam interest on debt is forbidden. Edit: yup i should have seen the whole video before commenting, he does mention the islamic model.

[@kendalljohnson9172]

Guendouz Akrem it’s the same in christianity but these things no longer govern the modern business environment🤷🏾‍♂️

[@TheAcdcninja]

Guendouz Akrem he does talk about a few Islamic banks later in the video. I honestly cannot wrap my head around that business model...

[@guendouzakrem1505]

@@TheAcdcninja tbh I don't understand it either. It's like the banks act like venture capitalists or something. Here's another interesting thing, the financial sector in my country Algeria (a Muslim country) is retarded because the people don't subscribe to the whole interest model for religious reasons.

[@Stewiehleba]

@@guendouzakrem1505 He forgot to mention that those banks also charge much higher fees.

[@TheAcdcninja]

리주민 wait so does that mean the bank is essentially just a property portfolio? And then you buy shares and those shares amount to a house?

[@khrashingphantom9632]

The biggest issue with debt that doesn't get mentioned is the complete inability opt out of it. The most common narrative is that people are "living beyond their needs or means" or "people aren't fiscally responsible" which is a very easy aesthetically pleasing notion, but the truth is far more interesting. Most debt is the result of inflation MASSIVELY outpacing wages (well at least in the U.S) lol. That combined with the overall system of "credit" it rewards individuals that apply for and pay off debt as opposed to actually owning the assets they pay for. The entire U.S economic system is completely dedicated to acquiring debt to be paid over long courses of time fuel income from interest. That's why the combination of rampant inflation and slow wage growth is extremely viable to this economic system. It ensures that generations will spend their entire lifetimes paying towards assets they'll never truly own and the loaners endlessly acquiring money from the interest of said loans.

[@randelr8638]

EE to the rich people "Hey how're doing? Patreon link in the description below" Me:That was real smooth. Where did he study marketing from?

[@cmdr_ultraviol3nt]

"How you doin? Patreon link in the video description."

[@Danny_6Handford]

I was well into my forties when I first started to learn how money is created. At first, I could not believe it. This was not what I was taught about money in my younger days. I had to earn it the old fashion way by working 8 to 12 hours a day for a paycheck. To me the most stunning realization was that modern money is created by issuing loans without having the physical money to loan but by manufacturing fake money either by printing paper money or by simply entering the digits into a bank account or computer. In other words, pretending to lend money but expecting to be paid back with money that actually exists and to add insult to injury paid back with interest. When creating money from debt was accepted as a legitimate way to do business in the free market, the flood gates were open and it was “smoke and mirrors” from that point on regardless if it was the government, the central banks or the commercial banks or even private business giving out the fake loans to create money by putting people, businesses and governments into debt. This is essentially a Ponzi scheme since more money needs to be created to continually pay off the ever increasing debt. The only chance this kind of money has of ever being paid back is if the economy is continuously growing and creating money this way is also used to force the economy to grow. Throughout history all money that was created this way eventually became worthless as a result of hyperinflation which destroyed the economy and the wealth of the nation. The idea and thinking that the economy always has to grow for humans to progress and to be successful may be the problem. Presently if the economy is not growing, it is considered a failure. This type of thinking cannot go on uninterrupted on a finite planet with finite resources. There needs to be flexibility in the system for the economy to expand and contract and for a contraction to be considered normal and not a problem. For this type of thinking to work, there needs to be some new economic models developed along with some new types of money and financial systems based on economic sustainability not on economic growth and money inflation. Presently, to create incentives to keep the economy growing, the money supply is continuously inflated by pumping more and more money into the system. This is done by promoting and creating more and more debt especially government debt which of course needs to be paid back with interest by future generations. When the economy is continuously growing, the amount of money representing the value of the economy which is the Gross Domestic Product (GDP) also has to continuously increase. As more money in the form of debt is created, the resulting growth rate in the economy and GDP becomes lower and lower as more and more debt is created. In an effort to keep the economy growing, the debt will quickly increase to more than the value of the GDP and when the debt becomes several more times than the value of the GDP, it will not be possible to ever pay back the debt and the system collapses with the value of the money going to zero. When this happens, the system is reset and the cycle is repeated. During the run up and then the reset, there will be some winners but there will be mostly losers with many casualties and war is also a possibility. This cycle has been repeating continuously throughout history from the Chinese Dynasties to the Roman Empire to Germany after World War One and to Argentine in the 21st century. If the American Empire can avoid this cycle, they would be the first.

[@tychobotter]

"The sun will come out, Tomorrow, Tomorrow!"

[@bob50042]

I think the closest thing we have now that’s somewhat similar to Islamic banking is Credit Unions. They still charge interest and all that stuff but its the depositors who “own” the bank. Unlike Bank of America which has stockholder, when you open an account at a credit union you put some money into a membership account which is basically your investment into the bank (and you get that money back if you ever leave the bank). If you compare credit unions to normal banks you usually see that interest rates are lower and saving rates are higher. So if we want to move the financial sector into a better direction I’d suggest one good small step is moving to a credit union. (Plus: they’re usually community or regional in scope so all their loans go to your local community)

[@hoovyzepoot]

How else am I supposed to be allowed to get into your house and steal your kidneys?