--- title: "Meaning & Key Takeaway of: Funny money has always been the reason…" description: "\"Funny money has always been the reason housing prices have risen too fast. First, it was liar loans and negative-amortizing mortgages, where the total ..." image: "https://sms4smile.com/quotes/i/50d/glenn-kelman-6951_crisis_funny-money-has-always-been-the-reason-h_1822237.jpg" --- # Funny money has always been the reason housing prices have… ![“Funny money has always been the reason housing prices have risen too fast. First, it was liar loans and negative-amortizing mortgages, where the total amount you owed increased rather than decreased every month. We all know how that ended, with the global financial crisis of 2008.” quote by Glenn Kelman](https://sms4smile.com/quotes/i/50d/glenn-kelman-6951_crisis_funny-money-has-always-been-the-reason-h_1822237.jpg) [Download](https://sms4smile.com/quotes/i/50d/glenn-kelman-6951_crisis_funny-money-has-always-been-the-reason-h_1822237.jpg) [Open image](https://sms4smile.com/quotes/i/50d/glenn-kelman-6951_crisis_funny-money-has-always-been-the-reason-h_1822237.jpg) > “Funny money has always been the reason housing prices have risen too fast. First, it was liar loans and negative-amortizing mortgages, where the total amount you owed increased rather than decreased every month. We all know how that ended, with the global financial crisis of 2008.” [Glenn Kelman](https://sms4smile.com/quotes/author/glenn-kelman/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Speculative lending and risky financial practices inflated housing prices, leading to a crisis when those risks materialized. **In simple terms:** Bad loans inflated house prices, causing a crash. Key Takeaway Avoid risky financial products. Themes economics housing risk crisis Mood analytical cautionary Type economic policy When to use this quote - home buying - investment decisions - policy making Key Concepts financial engineering speculation macro‑economics Questions to Reflect On - What safeguards can prevent similar crises? - Are all speculative tools inherently bad? A Different Perspective Regulation can stifle innovation. ★ ★ ★ ★ ★ No ratings yet [Crisis](https://sms4smile.com/quotes/about/crisis/) [Financial crisis](https://sms4smile.com/quotes/about/financial-crisis/) [Funny](https://sms4smile.com/quotes/about/funny/) [Funny money](https://sms4smile.com/quotes/about/funny-money/) [Housing Prices](https://sms4smile.com/quotes/about/housing-prices-921801/) [Liar](https://sms4smile.com/quotes/about/liar/) [Money](https://sms4smile.com/quotes/about/money/) [Money Reason](https://sms4smile.com/quotes/about/money-reason-486909/) [Owed Increased](https://sms4smile.com/quotes/about/owed-increased-2203075/) [Reason](https://sms4smile.com/quotes/about/reason/) [Reason Housing](https://sms4smile.com/quotes/about/reason-housing-2203074/) ## Related quotes > [Actually, high housing prices don't help the economy. They raise the cost of living.](https://sms4smile.com/quotes/michael-hudson/actually-high-housing-prices-don-t-help-the-economy-they-raise-the/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Americans now know that housing prices can go down and they can go down by 10, 20, 30, and in some cases, 40 or…](https://sms4smile.com/quotes/bill-gross/americans-now-know-that-housing-prices-can-go-down-and-they-can-go/) [Bill Gross](https://sms4smile.com/quotes/author/bill-gross/) > [The myth is that if housing prices go up, Americans will be richer. What banks - and behind them, the Federal Reserve - really…](https://sms4smile.com/quotes/michael-hudson/the-myth-is-that-if-housing-prices-go-up-americans-will-be-richer/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [The government has brought on the housing problem, partly by these very low interest rates, which encouraged many people to go way out on…](https://sms4smile.com/quotes/thomas-sowell/the-government-has-brought-on-the-housing-problem-partly-by-these/) [Thomas Sowell](https://sms4smile.com/quotes/author/thomas-sowell/) > [Everybody would be better off if they could buy housing for only, let's say, a carrying charge of one-quarter of their income. That used…](https://sms4smile.com/quotes/michael-hudson/everybody-would-be-better-off-if-they-could-buy-housing-for-only-let/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [We all know that housing prices are going up, but what most people don't realize is that this has become a family problem. Housing…](https://sms4smile.com/quotes/amelia-warren-tyagi/we-all-know-that-housing-prices-are-going-up-but-what-most-people-don/) [Amelia Warren Tyagi](https://sms4smile.com/quotes/author/amelia-warren-tyagi/) > [Until we stem the housing correction, until the biggest part of that is behind us and we have more stability in housing prices, we're…](https://sms4smile.com/quotes/henry-paulson/until-we-stem-the-housing-correction-until-the-biggest-part-of-that/) [Henry Paulson](https://sms4smile.com/quotes/author/henry-paulson/) > [“The simple measure of sanity in housing prices, Zelman argued, was the ratio of median home price to income. Historically, in the United States,…](https://sms4smile.com/quotes/michael-lewis/the-simple-measure-of-sanity-in-housing-prices-zelman-argued-was-the/) [Michael Lewis](https://sms4smile.com/quotes/author/michael-lewis/) > [“Dublin housing prices are a lot like New York ones, except that in New York, you get New York for your money.”](https://sms4smile.com/quotes/tana-french-the-likeness/dublin-housing-prices-are-a-lot-like-new-york-ones-except-that-in-new/) [Tana French The Likeness](https://sms4smile.com/quotes/author/tana-french-the-likeness/) > [Money is the reason why I do this ish I don't gotta lie and make excuses for it..](https://sms4smile.com/quotes/trilla/money-is-the-reason-why-i-do-this-ish-i-don-t-gotta-lie-and-make/) [Trilla](https://sms4smile.com/quotes/author/trilla/) > [Money is the reason why I do this shit.. I don't gotta lie and make excuses for it.](https://sms4smile.com/quotes/trilla/money-is-the-reason-why-i-do-this-shit-i-don-t-gotta-lie-and-make/) [Trilla](https://sms4smile.com/quotes/author/trilla/) > [My father has said a hundred times, and I have paid attention, that it's stupid to let money be the reason you don't do…](https://sms4smile.com/quotes/gabrielle-hamilton/my-father-has-said-a-hundred-times-and-i-have-paid-attention-that-it/) [Gabrielle Hamilton](https://sms4smile.com/quotes/author/gabrielle-hamilton/) > [“Never let money be the reason why you betray your close companion. You may not have the joy to spend it because you are…](https://sms4smile.com/quotes/israelmore-ayivor/never-let-money-be-the-reason-why-you-betray-your-close-companion-you/) [Israelmore Ayivor](https://sms4smile.com/quotes/author/israelmore-ayivor/) > [“I had money...But for some reason, I couldn't go anywhere. Apparently, finding a warm place to belong...Takes something other than money. Several years later,…](https://sms4smile.com/quotes/kabi-nagata/i-had-money-but-for-some-reason-i-couldn-t-go-anywhere-apparently/) [Kabi Nagata](https://sms4smile.com/quotes/author/kabi-nagata/) > [I do not like money, money is the reason we fight.](https://sms4smile.com/quotes/karl-marx/i-do-not-like-money-money-is-the-reason-we-fight/) [Karl Marx](https://sms4smile.com/quotes/author/karl-marx/) ## More by Glenn Kelman > [If your values don't alienate anyone, it is just platitude.](https://sms4smile.com/quotes/glenn-kelman/if-your-values-don-t-alienate-anyone-it-is-just-platitude/) [Glenn Kelman](https://sms4smile.com/quotes/author/glenn-kelman/) > [Employers are as sensitive to housing costs as their employees, which is why, when we build more houses, we create more jobs.](https://sms4smile.com/quotes/glenn-kelman/employers-are-as-sensitive-to-housing-costs-as-their-employees-which/) [Glenn Kelman](https://sms4smile.com/quotes/author/glenn-kelman/) > [When my brother and I were 11, our father designed a 17-foot boat for sailing around the world. He'd never ventured more than a…](https://sms4smile.com/quotes/glenn-kelman/when-my-brother-and-i-were-11-our-father-designed-a-17-foot-boat-for/) [Glenn Kelman](https://sms4smile.com/quotes/author/glenn-kelman/) > [We don't need to take the world by storm. We just need to make our customers happy, and when we do that, the word…](https://sms4smile.com/quotes/glenn-kelman/we-don-t-need-to-take-the-world-by-storm-we-just-need-to-make-our/) [Glenn Kelman](https://sms4smile.com/quotes/author/glenn-kelman/) > [I learned, even when all hell is breaking loose, first to take time to make my environment productive.](https://sms4smile.com/quotes/glenn-kelman/i-learned-even-when-all-hell-is-breaking-loose-first-to-take-time-to/) [Glenn Kelman](https://sms4smile.com/quotes/author/glenn-kelman/) > [Every firing happens differently except in this one respect: the person being fired can't believe how fast it happens.](https://sms4smile.com/quotes/glenn-kelman/every-firing-happens-differently-except-in-this-one-respect-the/) [Glenn Kelman](https://sms4smile.com/quotes/author/glenn-kelman/) > [People can smell a lack of respect from a mile away.](https://sms4smile.com/quotes/glenn-kelman/people-can-smell-a-lack-of-respect-from-a-mile-away/) [Glenn Kelman](https://sms4smile.com/quotes/author/glenn-kelman/) > [Almost everything is interesting if you work at it.](https://sms4smile.com/quotes/glenn-kelman/almost-everything-is-interesting-if-you-work-at-it/) [Glenn Kelman](https://sms4smile.com/quotes/author/glenn-kelman/) > [I think the corporate world is pretty starved for personality. The reason you have comic strips like 'Dilbert' and sitcoms like 'The Office' is…](https://sms4smile.com/quotes/glenn-kelman/i-think-the-corporate-world-is-pretty-starved-for-personality-the/) [Glenn Kelman](https://sms4smile.com/quotes/author/glenn-kelman/) > [It's easy to grow 300% in your first year or two, when you're starting with nothing and people first hear about your service. What…](https://sms4smile.com/quotes/glenn-kelman/it-s-easy-to-grow-300-in-your-first-year-or-two-when-you-re-starting/) [Glenn Kelman](https://sms4smile.com/quotes/author/glenn-kelman/) > [Most of the tech CEOs I know used to think that moving to the Midwest or the South was beneath us, a good tactic…](https://sms4smile.com/quotes/glenn-kelman/most-of-the-tech-ceos-i-know-used-to-think-that-moving-to-the-midwest/) [Glenn Kelman](https://sms4smile.com/quotes/author/glenn-kelman/) > [I really admire the fact that whenever Marc Singer gets a call from someone running late, he says he's running late, too. 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