--- title: "Meaning & Key Takeaway of: The myth is that if housing prices go up…" description: "\"The myth is that if housing prices go up, Americans will be richer. What banks - and behind them, the Federal Reserve - really want is for new buyers t..." image: "https://sms4smile.com/quotes/i/8b1/michael-hudson-2134_able_the-myth-is-that-if-housing-prices-go-up_2564980.png" --- # The myth is that if housing prices go up, Americans will… ![“The myth is that if housing prices go up, Americans will be richer. What banks - and behind them, the Federal Reserve - really want is for new buyers to be able to borrow enough money to buy the houses from mortgage defaulters, and thus save the banks from suffering from more mortgage defaults.” quote by Michael Hudson](https://sms4smile.com/quotes/i/8b1/michael-hudson-2134_able_the-myth-is-that-if-housing-prices-go-up_2564980.png) [Download](https://sms4smile.com/quotes/i/8b1/michael-hudson-2134_able_the-myth-is-that-if-housing-prices-go-up_2564980.png) [Open image](https://sms4smile.com/quotes/i/8b1/michael-hudson-2134_able_the-myth-is-that-if-housing-prices-go-up_2564980.png) > “The myth is that if housing prices go up, Americans will be richer. What banks - and behind them, the Federal Reserve - really want is for new buyers to be able to borrow enough money to buy the houses from mortgage defaulters, and thus save the banks from suffering from more mortgage defaults.” [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 quote critiques the belief that rising housing prices automatically increase wealth, highlighting that banks and the Fed aim to keep lending flowing to avoid defaults. **In simple terms:** Housing price rises don’t guarantee wealth; banks need borrowers to prevent defaults. Key Takeaway Recognize the financial system’s motives. Themes economics real estate policy Mood skeptical analytical Type critical explanatory When to use this quote - home buying - investment decisions - policy analysis - risk assessment Key Concepts inflation financial stability banking monetary policy Questions to Reflect On - How do lending practices affect housing affordability? - What are the long‑term effects of preventing defaults? A Different Perspective It oversimplifies complex market dynamics. ★ ★ ★ ★ ★ No ratings yet [Buyers](https://sms4smile.com/quotes/about/buyers/) [Customer](https://sms4smile.com/quotes/about/customer/) [Federal reserve](https://sms4smile.com/quotes/about/federal-reserve/) [Housing](https://sms4smile.com/quotes/about/housing/) [Money](https://sms4smile.com/quotes/about/money/) [Myth](https://sms4smile.com/quotes/about/myth/) [Reserves](https://sms4smile.com/quotes/about/reserves/) [Suffering](https://sms4smile.com/quotes/about/suffering/) ## Related quotes > [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/) > [The same with the mortgage brokers that were selling people mortgages they couldn't afford. 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