Tuesday, September 14, 2010

Why Does My Tailbone Burn

The strange logic of the EU average ... The worst

Nicolas Sarkozy has made the following comments recently :
"France has 57% of owners, the average Europe is 66%. Between 2002 and 2007, the rate rose only 1.2%. To achieve the 66% would require forty years, you'll be retired and me too. We have drawn the conclusion to profoundly change our system "
The reasoning is as follows: we Y but our neighbors are doing X, so we must do everything we can to get away from there and be closer to X. The key to this mysterious logic resides in the fact that our president is assumed that owning, bin, c is good.

But owning is, for most households, invest much of their savings in a single asset: real estate. However, the financial specialists have been saying for a long time, it is extremely risky put all his savings on a single asset, that is to say put all your eggs in one basket.

Oh, but I hear mostly retort: "But real estate, it can not fall!" bin see. Besides owning a property exposes the owners to a number of risks that can be very expensive. For example, a sudden change of standards lifts that shook the purse of my parents at the wrong time.

Another classic fallacy of believing that we can not build equity when you are a tenant. Alexander and Stephen have shown that this is wrong because it is entirely possible to save money while being a tenant. The only difference being that the assets are not the same shape.

Not only the government is rarely able to implement policies to achieve the targets but also, it tends to set goals whose relevance escapes me somewhat.




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