The Best Racket Ever

Last week, for the first time in my life, I mailed off a mortgage check instead of the rent. It felt pretty good. At night, I can see the Citgo sign from my front porch. It's an orange smudge between the trees, but I can see it. Two years ago, Leigh and I probably couldn't have afforded to buy the Jamaica Plain condominium we now call home.

But there's something in this that's been bothering me ever since my wife and I applied for the home loan last month. For at least the next five years, we'll pay about $1,100 in interest alone. By the back of the envelope, if we sell the place in 2014, the bank will have made over 20 percent return on its investment in the property and our credit.

Well, that's not so bad, I thought. The alternative is to pay rent. But then I realized: it's the landlord's mortgage that makes the rent so high.

In short, the banks had going the best racket ever. Investing in real estate - a low-risk investment by normal measures - they made venture fund returns.

Now, I'm asking, Who got greedy on that? Who decided that goose wasn't laying enough golden eggs and wanted to go back up the beanstalk for more?