Comments by "Louis Giokas" (@louisgiokas2206) on "China Has 400 Million Mortgage Slaves, With 8% Ending Up With Unfinished Properties" video.

This surprise at the fact that payments start out paying mostly interest, not principal shows the lack of knowledge of how mortgages work. It is the same in the US, and most western countries. There sis no mystery in why this is the case. The funds represent a large investment for those providing the funds. They make their income up front to make it worth their while. Then, later the principle is paid back. It all comes down to the lack of financial education in communist countries. Something similar happened in the former USSR when that country fell apart. Workers were given shares in the companies they worked for. They had no idea what these were and people who did swooped in and bought the shares cheap.
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