> Also, you only needed to put down $40,000 and the bank paid the other $160k for the house purchase. In this scenario the bank just creates the money out of t

> Also, you only needed to put down $40,000 and the bank paid the other $160k for the house purchase. In this scenario the bank just creates the money out of thin air. And then they get to keep all of the interest payments. So, yeah, it's good for the home owner, but it's great for the bank -- so long as most people keep paying back their loans.