That doesn't make sense to me. I borrowed 99,000 for my house and will end up repaying (by paying off early, in 20 years), just over 193,000.  How is that fraudulent? Because there is only 99,000 in the money supply when you borrow the money. Someone will have to go bankrupt for you to be able to get your hands on the money you need to repay the loan. The system is designed for someone to lose their shirt, often through no fault of their own.