Real Estate Fairy Tale

Once upon a time there was a businessman, a banker, and a Mexican. The Mexican might also have been a Polish worker or a Bulgarian. The businessman did his business, the banker could do magic with money, and the Mexican built houses. And all three they needed a house.

The businessman saw how things went well, and he asked the Mexican to build his house.  A house with many rooms, ten acres of soil, a fine kitchen, extensions, garage, shed, garden and so on. The Mexican agreed, because this way he could also earn a little money. The businessman was happy, and went to the banker to borrow enough money for the land, materials and labour.

The Mexican saw how things went well, and he decided to build a house for himself too. A smaller house, as he earned less than the businessman. Labour relations, profit margins, bigger bosses, and all that. He too went to the banker and asked for a loan for his future house. The banker said it was a good idea, as there was enough work in construction. This was a reliable debtor.


The banker saw that things went very, very well, and he too decided to build a house with his magically made money. He saw that he would profit from the interest the businessman an the Mexican would pay him on their loans, so he bought the biggest piece of land for himself. Naturally he also hired the Mexican to build his house, because he did a fine job and was cheap. Besides, the Mexican would pay him back in interest payments anyway.

The Mexican worked hard and efficiently. Amazingly. And finally he finished the house of the businessman, topped off the bankers estate, and he could evan start living in his own humble abode. He was proud. He had done a fine job indeed.

But then something happened that noone had foreseen. There was no more work for the Mexican. Because everybody already owned a house. The banker lived like a prince, the businessman was well to do, and the Mexican had a nice little home. Everyone lived under his own roof.

Perfect? No! Because the houses had not been paid for yet. Their loans were still outstanding. The Mexican did no longer earn money, because there was nothing left to do. The businessman soon also earned no money, because he mostly sold to the Mexican. And the banker no longer gained interest, because the businessman and Mexican could no longer pay him. There was only one thing left to do. They had to sell their houses.

But to whom? None of them earned enough money to buy the house that they wanted. Even if they already lived in it. Was there then nothing they could do? Couldn't the banker create some more magic money? No, said the banker, because then I will need another house. Only then I can make new magic money. The new house will be mortgaged, and it will be there.


Full of joy the businessman declared that he would build this new house. He would hire the Mexican to do the work for him, and the would also give the new house a swimming pool. Then certainly a rich new someone would come and buy the house, and pay for their debts. The banker thought it was a beautiful plan. There would be a new house, so he could mortgage it and magically make some new money. He used all the money already paid and let the businessman do his work. It would be a new palace: "Fata Morgana".


But even before the palace was finished it became clear that there would be no buyer. Because there was only the three of them. And none of them could earn enough money to buy the palace. And so they were all forced to leave their homes, to live next to their front porch. Because the money was gone, even if all their houses were built.

And they lived unhappily ever after. Shame.

Or do you think they would have dared to squat in their own homes?