About 44 years ago (1980), not long after being called to the Bar at Osgoode Hall in Toronto in 1975, I remember thinking how devious it was of bankers to lubricate the sale of money by doubling the capital value of a house then cutting the current lending rate by 50%. You will for example note that from the banker’s perspective the calculation of interest (Principal x Rate x Time) is the same whether the principal (loan) were $100,000 and the rate 10% per annum or whether the principal (loan) were $200,000 and the rate were 5% per annum; namely, $10,000 in either case. The unquestionable difference however is the reflex attitude that getting something for less makes the product more worthy.
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