Quote:
Originally Posted by Sephiroth
Why should borrowing money (which repaid to the lender) turn the borrower into a parasite?
The entire economic system in heavily populated small land-mass countries depends on this revolving door. When the economy becomes stressed as it is now and goes out of balance, landlords are placed into difficulty because their income stream needed to repay their investment debt has disappeared. You know that, of course. But no parasitism in that.
Your last sentence will indeed re-balance the equation and ultimately will hit the lenders as much as the landlords - indeed the lenders will become the landlords!
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It is though - their purpose is to extract rents from those out there genuinely creating something, who ironically can't afford buildings due to the high valuations because of the number of landlords in the market participating in this and restricting overall supply.
They essentially distort the market making genuine entrepreneurship - that which genuinely creates things for the economy and employs people - harder. It'd be welcome for many of these businesses to exit the market.