First, the economic primitive we are referring to broadly apply to any leveraged purchase where the asset can be used by the borrower, while a creditor maintains lien rights (control in the case of default) until the debt is fully repaid. We will call this a “mortgage”.

Second, we will provide a brief discussion as to why such a primitive is important. To do this, we explore why land may be necessary, under what conditions it will have value, and how mortgages may be useful under those conditions.

We do not believe that we need to reiterate the prevalence of a mortgage (leveraged purchase) - whether it is the nearly $2T of leveraged buyouts this year, $1.2T of mortgage originations in 2Q20, or $1.3T of autodebt, ~$1T of credit card debt... leveraged purchases are very important to the consumer and the economy of today.

First, the economic primitive we are referring to broadly apply to any leveraged purchase where the asset can be used by the borrower, while a creditor maintains lien rights (control in the case of default) until the debt is fully repaid. We will call this a “mortgage”.

Second, we will provide a brief discussion as to why such a primitive is important. To do this, we explore why land may be necessary, under what conditions it will have value, and how mortgages may be useful under those conditions.

We do not believe that we need to reiterate the prevalence of a mortgage (leveraged purchase) - whether it is the nearly $2T of leveraged buyouts this year, $1.2T of mortgage originations in 2Q20, or $1.3T of autodebt, ~$1T of credit card debt... leveraged purchases are very important to the consumer and the economy of today.