Why housing is unaffordable in three minutes
Channel: Peninsula New Economy Transition
Date: 12/10/2015

Marco Vangelisti explains why housing is becoming increasingly unaffordable in an economy where private banks have a virtual monopoly on the creation of money, and 95% or more of the money in circulation is created when debt instruments are signed. Beginning with concepts like maturity, liquidity, and credit, he shows how liquidity transformation in the housing market led to huge transformations of bank assets to liabilities, thereby creating the "House of Cards" that led to the financial crisis of 2007. In the 50s, the median cost of a house was roughly a year's income. Today, the same cost is about six or seven times that amount.