Michael Lewis: Home Without Equity

Posted by admin on Monday, June 12, 2023

Meaning of Michael Lewis Money Quote: saying house payments are as good as rent if no equity is accumulated. Michael Lewis said:

 

 

“A Home without Equity Is Just a Rental with Debt” — Michael Lewis

 

 

This quote from Michael Lewis suggests that a home purchased with little or no equity built up is essentially functioning like a rental property, except with the added burden of mortgage debt that must be serviced. Some key points in interpreting his perspective:

• Lewis implies that if a homeowner has put little of their own money into the property through low or no down payment, they are really just renting from the bank through mortgage payments rather than truly owning the asset.
• He portrays taking on a large loan-to-value mortgage as leaving the homeowner with the costs and responsibilities of ownership but few of the benefits since they have little personal financial stake in the property beyond obligation of debt.
• However, building equity takes time and responsible use of mortgage debt allows many families to access stable, affordable housing. Reasonable experts disagree on the impacts of various levels of home loan leverage.
• A balanced interpretation is that the quote reflects Lewis’ caution around high-debt home purchases, but the best path for individuals depends on their priorities, budgets, market conditions and how mortgages fit into a holistic long-term financial strategy.

Michael Lewis: Get Rich on Dumb Moves

Posted by admin on Friday, November 17, 2017

Michael Lewis Money Quote saying no need to be smart to get rich if being dumb will get the same or better results. Michael Lewis said:
 

 

“What are the odds that people will make smart decisions about money if they don’t need to make smart decisions — if they can get rich making dumb decisions?” — Michael Lewis

 

 

In this quote, Michael Lewis is questioning whether people will consistently make prudent financial choices if there are few consequences for imprudent ones. By posing the rhetorical question of what are the odds of smart decision-making if people can get wealthy through dumb decisions, Lewis implies that without discipline or accountability, wealth may be accumulated through folly as easily as wisdom.

The interpretation is that Lewis doubts the ability or willingness of many to exercise financial prudence if lack of care or forethought does not impede success and riches. His view suggests responsible money management skills may deteriorate without incentives for care, planning and risk assessment created by an environment where foolishness leads more readily to loss.

The overall message conveyed is Lewis’ skepticism that wealth attained through laxity will necessarily be managed judiciously thereafter if amassing riches requires no discipline, acumen or effort to avoid pitfalls along the way.