I didn't have access to internet yesterday thus I am posting my article today.

And thus the banks give you money which they don't have for real and you are working your ass off for half of your life to pay it off. And if you find yourself in a difficult situation in your life when you cannot pay the mortgage then the bank is taking your house and sells it. In most of the countries the banks takes your house, sells it and covers your debt but in Spain the situation is different. Here - if you don't pay the mortgage - the bank takes your house, sell it to pay off their credit but you are still obliged to pay off the remaining credit. Yes... it seems unreal and myself I could not believe it when I've heard it. But I have asked various persons and they have confirmed the same. The bank takes your house, sells it but you are still obliged to pay off the remaining credit.

But let's come back to the bank credits and the interest on it. Somebody could say: "wait a second... the banks take deposits from people and businesses, later invest it and the profit from their investments is being used to pay interest to the people who have deposited their money and the rest stays within the bank". Yes and no... If this was the case then we would not have such a big crisis which started in 2008 and continues until today. And the crisis in 1929 in America was of similar nature. In our economy everybody tries to make as quick and as much profit as possible and to achieve this people ( including the banks ) take risks and break the rules hoping that nobody will catch them. We believe that the system is being controlled and monitored by the governmental agencies but look again... why did we have the crisis of 2008 despite the control from governments ? The control is not effective and people ( including the banks ) abuse the system in the chase to make quick and big profits.

Here is another example to proof my point about the abuse of the credit system. There is only certain percentage of people which want to sell their house or cannot pay their mortgage in any given moment. It is being calculated and the decisions are being made based on these calculations and averages. But in a situation when more then the average amount of people wants to sell their houses ( e.g. because something goes wrong on a bigger scale ) then these people cannot do it so easy simply because there is more credits ( money without the cover ) then the real money ( 500.000 $ in credits but only 100.000 $ in real money ). It all works only as long as there are more people coming and asking for more credit. In reality it is like a pyramid scheme which existence depends on the inflow of more new members which pay profits to those who are on top until it reaches a point of low growth and it starts to crash.

To be continued...