That’s the thinking that enabled the ’08 crash. Money created by bank credit can move resources from the future into the present via monetizing them with credit. Your home isn’t actually yours until you can retire the mortgage and you will pay for its real value several times over the life of the loan. You can sell the home or refinance it, but each of those only transfers the “obligation” not the ownership.

Banks have a lot of control over your equity position by manipulating demand but take little to no risk in that. Markets will always adjust supply to capture demand. Banks even control the average size of homes built via their lending requirements. As credit tightens builders respond to the demands of the more qualified buyers and build larger homes. In the heyday of homes built for the market created by the GI bill, the average home wasn’t much bigger than many living rooms of today’s average home.

When discussing the economy and its drivers it is important to zoom out to the macro view where stocks and flows can be accurately evaluated. This is where the distinction between money created by Congress and credit created by banks becomes obvious. Eventually, all that credit-based money will have to be retired with money created by Congress.

This makes the national debt the “net” available money supply if we took a snapshot and forced a balance between bank credit money and the debt that created it. If we go further and subtract wealth accumulation and trade deficit there isn’t a lot left to retire that debt in a timely manner. This destabilizes the economy with default risk during downturns in the business cycle.