How did an unemployed artist manage to build a house at this price? He used €50,000 bricks of course! Note: April Fools was last week, this is no joke but enjoy this unique story.
"People were pouring billions into buildings now worth nothing," he said. "I wanted to create something from nothing." Says the builder, Frank Buckley, in this story by Rueters.
“Whatever you say about the euro, it’s a great insulator.” says Frank Buckley; has he found the true worth of the Euro?
Speaking of homes and money; a few weeks ago someone engaged in a conversation online on the topic of "destruction of wealth." They claimed that their home had been worth $500,000 and was now only worth $300,000 so their wealth had been destroyed. I pointed out that the value of the house was still the same since they could trade it for a similar property elsewhere. Real estate having a true value while paper currency has only an accepted value, the US dollar is the measurement which had been destroyed. Or is it that the dollar was artificially high and thus more were printed until things were correctly balanced?
As I dug into the past few years of US dollars in circulation it was interesting to find that the 40% missing from the "value" of the $500,000 home almost exactly matches the increased number of bills in circulation according to the FederalReserve.gov website. Check the M1 between 2008 and 2012, 40% more currency to match up with a 40% loss in home prices? I won't say the two are directly related but it is interesting to think about the relation between an average family's biggest asset, the mortgage industry and its big brother who prints the bills. What other things have seen their value "destroyed" and whats value has increased?
Visit Frank Buckley's http://billioneurohouse.com
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