Robert Kiyosaki, in his video, discusses business and other topics.

Whether a bank is privately held or nationalized, loans still work the same way.

A 30 year fixed is a 30 year fixed, and so are 15 year fixed rate mortgages as well. However, there is more to it than what is the rate, what is the payment. You can read what I mean in Barking With The Big Dogs. I’ve posted several chapters.

What may be different in the private sector banking versus socialized banking are limited loans types, such as an interest only.

I’m not suggesting that everyone get an interest only mortgage, but it is not a stupid loan as some would say. It’s actually a very good loan. You just have to see beyond the hype, or negative hype.

Limiting products is good for the bank, not the borrower.

With all of the problems in the financial world today, the pay option mortgage is said to be the problem that started it all. I would disagree.

The real problem is when the government passes laws and regulations, such as the Community Reinvestment Act of 1977 under Jimmy Carter, basically forcing banks to lend to risky borrowers. Also, lack of education in our schools.

I was watching a person talk about these pay option mortgages on his website and he made this point over and over about the cause of the meltdown which started the financial crisis a couple of years ago.

He used lots of graphs and charts that were overwhelming and compelling. However, on his very own site, an article (that he put up) went on to say that these loans were very good for the borrower and lender for the last 20 years!

It should be clear that the loan is not the problem, but rather the problems are much deeper.

It’s not a particular loan, but the action of people and businesses that create the problem.

I’m not sure who actually said it, but the quote was something like this, ” it takes more knowledge to borrow than to save.” Possibly Robert Kiyosaki.

Maybe having more knowledge is tough and is why the “get out debt” or “all debt is bad” people are so popular…it’s easy for everyone to talk about, and easy for some people to sell – such as a talk show host. If a person has a degree in finance, why would that person not teach what he knows versus saying debt is dumb? The answer, debt is dumb is easy to sell the masses.

In actuality, borrowing is the simple side to finance and very easy to understand, it’s just made very complicated.

Not all people should borrow money. Not all loans are meant for all people. But for those willing to learn how the banking game is played, they can come out winners of tomorrow.

Therefore, the real key to success and building wealth is knowledge.