--- title: "Meaning & Key Takeaway of: The aim of promoting low down payments is…" description: "\"The aim of promoting low down payments is to push prices back up so that fewer houses are going to be in negative equity and fewer people are going to ..." image: "https://sms4smile.com/quotes/i/b7c/michael-hudson-2134_aim_the-aim-of-promoting-low-down-payments-i_976408.png" --- # The aim of promoting low down payments is to push prices… ![“The aim of promoting low down payments is to push prices back up so that fewer houses are going to be in negative equity and fewer people are going to walk away from the mortgages. That will save the from taking a loss on their junk mortgage loans.” quote by Michael Hudson](https://sms4smile.com/quotes/i/b7c/michael-hudson-2134_aim_the-aim-of-promoting-low-down-payments-i_976408.png) [Download](https://sms4smile.com/quotes/i/b7c/michael-hudson-2134_aim_the-aim-of-promoting-low-down-payments-i_976408.png) [Open image](https://sms4smile.com/quotes/i/b7c/michael-hudson-2134_aim_the-aim-of-promoting-low-down-payments-i_976408.png) > “The aim of promoting low down payments is to push prices back up so that fewer houses are going to be in negative equity and fewer people are going to walk away from the mortgages. That will save the from taking a loss on their junk mortgage loans.” [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. The policy of encouraging low down payments inflates home prices, preventing negative equity and defaults, thereby protecting lenders from losses on risky mortgages. **In simple terms:** Low down payments raise prices to avoid defaults. Key Takeaway Support higher down payments to reduce risk. Themes housing finance risk management policy economics Mood cautious analytical Type policy economic critical When to use this quote - home buying - lender risk assessment - government housing policy Key Concepts mortgage lending price inflation default risk Questions to Reflect On - How does this policy affect first‑time buyers? - What alternatives could protect lenders without raising barriers? A Different Perspective Higher down payments may limit homeownership for low‑income buyers. ★ ★ ★ ★ ★ No ratings yet [Aim](https://sms4smile.com/quotes/about/aim/) [Customer](https://sms4smile.com/quotes/about/customer/) [Equity](https://sms4smile.com/quotes/about/equity/) [Equity Fewer](https://sms4smile.com/quotes/about/equity-fewer-1908910/) [Fewer](https://sms4smile.com/quotes/about/fewer/) [House](https://sms4smile.com/quotes/about/house/) [Junk](https://sms4smile.com/quotes/about/junk/) [Justice](https://sms4smile.com/quotes/about/justice/) [Loan](https://sms4smile.com/quotes/about/loan/) [Loss](https://sms4smile.com/quotes/about/loss/) [Low Payments](https://sms4smile.com/quotes/about/low-payments-1908907/) [Lows](https://sms4smile.com/quotes/about/lows/) [Mortgage](https://sms4smile.com/quotes/about/mortgage/) [Mortgages Save](https://sms4smile.com/quotes/about/mortgages-save-1908908/) [Negative](https://sms4smile.com/quotes/about/negative/) [Payment](https://sms4smile.com/quotes/about/payment/) [People](https://sms4smile.com/quotes/about/people/) [Prices Fewer](https://sms4smile.com/quotes/about/prices-fewer-1908909/) [Promoting](https://sms4smile.com/quotes/about/promoting/) [Promoting Low](https://sms4smile.com/quotes/about/promoting-low-1908906/) [Walks](https://sms4smile.com/quotes/about/walks/) ## Related quotes > [Now, suppose that a homeowner puts down only 3% of their own money or 3.5% for the FHA. That means if prices go down…](https://sms4smile.com/quotes/michael-hudson/now-suppose-that-a-homeowner-puts-down-only-3-of-their-own-money-or-3/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [So we are in for years of debt deflation. That means that people have to pay so much debt service for mortgages, credit cards,…](https://sms4smile.com/quotes/michael-hudson/so-we-are-in-for-years-of-debt-deflation-that-means-that-people-have/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [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/) > [So, what people are actually left with to spend is maybe 25 to 30% of their income on goods and services, after paying taxes…](https://sms4smile.com/quotes/michael-hudson/so-what-people-are-actually-left-with-to-spend-is-maybe-25-to-30-of/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [There are two definitions of deflation. Most people think of it simply as prices going down. But debt deflation is what happens when people…](https://sms4smile.com/quotes/michael-hudson/there-are-two-definitions-of-deflation-most-people-think-of-it-simply/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [The current U.S. and Eurozone depression isn't because of China. It's because of domestic debt deflation. Commodity prices and consumer spending are falling, mainly…](https://sms4smile.com/quotes/michael-hudson/the-current-u-s-and-eurozone-depression-isn-t-because-of-china-it-s/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Most of these charges that people pay are economically unnecessary. There's no real cost behind them. There's no real value behind them. So, they're…](https://sms4smile.com/quotes/michael-hudson/most-of-these-charges-that-people-pay-are-economically-unnecessary/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [For many people, the mortgages they took out before 2008 are so high that they would be better off walking away from their houses.…](https://sms4smile.com/quotes/michael-hudson/for-many-people-the-mortgages-they-took-out-before-2008-are-so-high/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Same reason why young women on juries are not a good idea, they don't get it. They're not in that same life experience of…](https://sms4smile.com/quotes/kimberly-guilfoyle/same-reason-why-young-women-on-juries-are-not-a-good-idea-they-don-t/) [Kimberly Guilfoyle](https://sms4smile.com/quotes/author/kimberly-guilfoyle/) > [I don't have any contempt for the men who have to have jobs and have to commute and have to pay the mortgage and…](https://sms4smile.com/quotes/sloan-wilson/i-don-t-have-any-contempt-for-the-men-who-have-to-have-jobs-and-have/) [Sloan Wilson](https://sms4smile.com/quotes/author/sloan-wilson/) > [A decline in the national housing price level would need to be substantial to trigger a significant rise in foreclosures, because the vast majority…](https://sms4smile.com/quotes/alan-greenspan/a-decline-in-the-national-housing-price-level-would-need-to-be/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [When you think that most of us are doomed by divine grace to roast in hell, to say nothing of mortgages and hail and…](https://sms4smile.com/quotes/sinclair-lewis/when-you-think-that-most-of-us-are-doomed-by-divine-grace-to-roast-in/) [Sinclair Lewis](https://sms4smile.com/quotes/author/sinclair-lewis/) > [Consider a 15- or 20-year fixed-rate mortgage instead of a 30-year, if you can afford the monthly payments - they may not be as…](https://sms4smile.com/quotes/suze-orman/consider-a-15-or-20-year-fixed-rate-mortgage-instead-of-a-30-year-if/) [Suze Orman](https://sms4smile.com/quotes/author/suze-orman/) > [Bailing out people who made ill-advised mortgages makes no more sense that bailing out people who lost their life savings in Las Vegas casinos.](https://sms4smile.com/quotes/thomas-sowell/bailing-out-people-who-made-ill-advised-mortgages-makes-no-more-sense/) [Thomas Sowell](https://sms4smile.com/quotes/author/thomas-sowell/) > [People who can't afford their mortgages and have to renegotiate with the bank or something gets repossessed after you worked your whole life. You…](https://sms4smile.com/quotes/seth-gordon/people-who-can-t-afford-their-mortgages-and-have-to-renegotiate-with/) [Seth Gordon](https://sms4smile.com/quotes/author/seth-gordon/) ## More by Michael Hudson > [Europe is creating the flight of refugees that's tearing it apart politically, and leading rightwing nationalist parties to gain power to withdraw from the…](https://sms4smile.com/quotes/michael-hudson/europe-is-creating-the-flight-of-refugees-that-s-tearing-it-apart/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [This is not really currency that circulates. It's like the old joke about expensive vintage wine. Wine prices will go up and once in…](https://sms4smile.com/quotes/michael-hudson/this-is-not-really-currency-that-circulates-it-s-like-the-old-joke/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Nobody prefers to earn income any more, because that's taxable. Rich people prefer to make capital gains.](https://sms4smile.com/quotes/michael-hudson/nobody-prefers-to-earn-income-any-more-because-that-s-taxable-rich/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Nothing could be better for the economy than to get rid of fracking.](https://sms4smile.com/quotes/michael-hudson/nothing-could-be-better-for-the-economy-than-to-get-rid-of-fracking/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [If you end internet neutrality and permit mergers of the big information technology corporations, that's a form of rent seeking. It's part of today's…](https://sms4smile.com/quotes/michael-hudson/if-you-end-internet-neutrality-and-permit-mergers-of-the-big/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Deflation means a slowdown of income growth. Markets shrink, new capital investment and employment also taper off, so wages decline. That is what's happening…](https://sms4smile.com/quotes/michael-hudson/deflation-means-a-slowdown-of-income-growth-markets-shrink-new/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [What's bad for the frackers usually is good for the rest of the world.](https://sms4smile.com/quotes/michael-hudson/what-s-bad-for-the-frackers-usually-is-good-for-the-rest-of-the-world/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [You could say that the vote to withdraw from Europe is, it's really a vote of the British middle class, the working class, to…](https://sms4smile.com/quotes/michael-hudson/you-could-say-that-the-vote-to-withdraw-from-europe-is-it-s-really-a/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [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/) > [When economists speak of money, they neglect that all money and credit is debt. That is the essence of bookkeeping and accounting. There are…](https://sms4smile.com/quotes/michael-hudson/when-economists-speak-of-money-they-neglect-that-all-money-and-credit/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [The United States and Europe are in a state of debt deflation, where people and businesses have to pay banks instead of spending their…](https://sms4smile.com/quotes/michael-hudson/the-united-states-and-europe-are-in-a-state-of-debt-deflation-where/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [On the flat tax, the more you compress the tax rates, the more you untax where the income is really made, at the top…](https://sms4smile.com/quotes/michael-hudson/on-the-flat-tax-the-more-you-compress-the-tax-rates-the-more-you/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Income is sucked upward to the creditors, who then foreclose on the assets of debtors. This shrinks tax revenue, forcing public budgets into deficit.…](https://sms4smile.com/quotes/michael-hudson/income-is-sucked-upward-to-the-creditors-who-then-foreclose-on-the/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Debtor countries may postpone the inevitable by borrowing from the IMF or U.S. Treasury to buy out bondholders. This saves the latter from taking…](https://sms4smile.com/quotes/michael-hudson/debtor-countries-may-postpone-the-inevitable-by-borrowing-from-the/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [No price is too high to pay to try to make the financial system go on a little bit longer. But ultimately it can't…](https://sms4smile.com/quotes/michael-hudson/no-price-is-too-high-to-pay-to-try-to-make-the-financial-system-go-on/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Explore all 184 Michael Hudson quotes ](https://sms4smile.com/quotes/author/michael-hudson/) ## More Aim quotes > [If you aim at nothing, you will hit it every time.](https://sms4smile.com/quotes/zig-ziglar/if-you-aim-at-nothing-you-will-hit-it-every-time/) [Zig Ziglar](https://sms4smile.com/quotes/author/zig-ziglar/) > [A good aim surveys the present state of experience of pupils, and forming a tentative plan of treatment, keeps the plan constantly in view…](https://sms4smile.com/quotes/john-dewey/a-good-aim-surveys-the-present-state-of-experience-of-pupils-and/) [John Dewey](https://sms4smile.com/quotes/author/john-dewey/) > [The Christian man must aim at that complete obedience to God in which life finds its highest happiness, its greatest good, its perfect consummation,…](https://sms4smile.com/quotes/william-barclay/the-christian-man-must-aim-at-that-complete-obedience-to-god-in-which/) [William Barclay](https://sms4smile.com/quotes/author/william-barclay/) > [ He \[an earnest young reporter\] seemed to share the view of many intelligent, well-educated, well-meaning people that, while adult literature may aim to be… ](https://sms4smile.com/quotes/katherine-paterson/he-an-earnest-young-reporter-seemed-to-share-the-view-of-many/) [Katherine Paterson](https://sms4smile.com/quotes/author/katherine-paterson/) > [In Bosnia, little children shot in the head by a guy who thinks it's okay to aim his gun at a child.](https://sms4smile.com/quotes/christiane-amanpour/in-bosnia-little-children-shot-in-the-head-by-a-guy-who-thinks-it-s/) [Christiane Amanpour](https://sms4smile.com/quotes/author/christiane-amanpour/) > [Design certainly has a cosmetic, aesthetic aim. It always aims at making things beautiful. But relevance is just as important. I often say, 'If…](https://sms4smile.com/quotes/yves-behar/design-certainly-has-a-cosmetic-aesthetic-aim-it-always-aims-at/) [Yves Behar](https://sms4smile.com/quotes/author/yves-behar/) > [My aim was to make money for the bank. You lose track of the amounts involved when you are engaged in this kind of…](https://sms4smile.com/quotes/jerome-kerviel/my-aim-was-to-make-money-for-the-bank-you-lose-track-of-the-amounts/) [Jerome Kerviel](https://sms4smile.com/quotes/author/jerome-kerviel/) > [My only aim is to clock a time that everyone remembers.](https://sms4smile.com/quotes/hima-das/my-only-aim-is-to-clock-a-time-that-everyone-remembers/) [Hima Das](https://sms4smile.com/quotes/author/hima-das/) > [My main aim has always been to do good quality films with roles that have some substance. With Power and Beauty there were loads…](https://sms4smile.com/quotes/natasha-henstridge/my-main-aim-has-always-been-to-do-good-quality-films-with-roles-that/) [Natasha Henstridge](https://sms4smile.com/quotes/author/natasha-henstridge/) > [ I really enjoyed it - being involved in watching rushes and playback \[in "The Invisible Woman"\]. Ralph \[Fiennes\] was very open to my input,… ](https://sms4smile.com/quotes/felicity-jones/i-really-enjoyed-it-being-involved-in-watching-rushes-and-playback-in/) [Felicity Jones](https://sms4smile.com/quotes/author/felicity-jones/) > [My aim is to be counted among the top players.](https://sms4smile.com/quotes/babar-azam/my-aim-is-to-be-counted-among-the-top-players/) [Babar Azam](https://sms4smile.com/quotes/author/babar-azam/) > [The single aim of my life is that every child is: free to be a child, free to grow and develop, free to eat,…](https://sms4smile.com/quotes/kailash-satyarthi/the-single-aim-of-my-life-is-that-every-child-is-free-to-be-a-child/) [Kailash Satyarthi](https://sms4smile.com/quotes/author/kailash-satyarthi/) > [The aim of good prose words is to mean what they say. The aim of good poetical words is to mean what they do…](https://sms4smile.com/quotes/gilbert-k-chesterton/the-aim-of-good-prose-words-is-to-mean-what-they-say-the-aim-of-good/) [Gilbert K. Chesterton](https://sms4smile.com/quotes/author/gilbert-k-chesterton/) > [Prescribing hard work for the soft, or easy work for the hardy, is generally nonsense. What is always needed in any aim is right…](https://sms4smile.com/quotes/idries-shah/prescribing-hard-work-for-the-soft-or-easy-work-for-the-hardy-is/) [Idries Shah](https://sms4smile.com/quotes/author/idries-shah/) > [To be normal is the ultimate aim of the unsuccessful.](https://sms4smile.com/quotes/carl-jung/to-be-normal-is-the-ultimate-aim-of-the-unsuccessful/) [Carl Jung](https://sms4smile.com/quotes/author/carl-jung/) [Browse all 3,047 Aim quotes ](https://sms4smile.com/quotes/about/aim/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "The aim of promoting low down payments is to push prices back up so that fewer houses are going to be in negative equity and fewer people are going to walk away from the mortgages. That will save the from taking a loss on their junk mortgage loans.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/michael-hudson/the-aim-of-promoting-low-down-payments-is-to-push-prices-back-up-so/", "about": { "@type": "Thing", "name": "Aim" }, "@id": "https://sms4smile.com/quotes/michael-hudson/the-aim-of-promoting-low-down-payments-is-to-push-prices-back-up-so/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/b7c/michael-hudson-2134_aim_the-aim-of-promoting-low-down-payments-i_976408.png", "contentUrl": "https://sms4smile.com/quotes/i/b7c/michael-hudson-2134_aim_the-aim-of-promoting-low-down-payments-i_976408.png", "url": "https://sms4smile.com/quotes/i/b7c/michael-hudson-2134_aim_the-aim-of-promoting-low-down-payments-i_976408.png", "width": 1080, "height": 1080, "caption": "“The aim of promoting low down payments is to push prices back up so that fewer houses are going to be in…” — Michael Hudson", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Michael Hudson", "item": "https://sms4smile.com/quotes/author/michael-hudson/" }, { "@type": "ListItem", "position": 4, "name": "The aim of promoting low down...", "item": "https://sms4smile.com/quotes/michael-hudson/the-aim-of-promoting-low-down-payments-is-to-push-prices-back-up-so/" } ], "@id": "https://sms4smile.com/quotes/michael-hudson/the-aim-of-promoting-low-down-payments-is-to-push-prices-back-up-so/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```