View: https://youtu.be/Y4WmDoYJhnk
Banks are skyrocketing house prices because they are printing money, we just let this happen?
How is this allowed?
How arent normies going insane and protesting about this?
Banks are skyrocketing house prices because they are printing money, we just let this happen?
View: https://youtu.be/Y4WmDoYJhnk
Banks are skyrocketing house prices because they are printing money, we just let this happen?
How is this allowed?
How arent normies going insane and protesting about this?
its purely because of that? where can i read about the reasons? literally no where explains it properly
Thanks nwo
W
That only applies to the US and Canada. Housing costs have also gone up dramatically in Western Europe and China where there's no such zoning restrictions. OP's right that money printing is what has caused the housing bubble in every country. Notice if you look at real estate listings on almost every one you'll see "great investment opportunity!". This is because there are almost as many "investors" buying up houses as people who intend to live in them. And where did the investors get their money? From hard work? Yeah right, they get it from practically free money from the central bank.
The problem with this is A) a house isn't a fucking investment, you invest in something that is productive not a one time sale that never produces anything once it's been built. Rather it's a money-sink, something to put your almost free money into so that it appreciates in value faster than inflation. But then the problem is that 2) central banks can't keep interest rates low forever, as it drives up asset prices (and thus GDP giving the illusion of growth) while barely adding any real value to the economy. Eventually this makes the cost of living go up for workers who then struggle to make mortgage payments and start to downsize everything. Then the smarter investors realize how retarded the scheme they bought into is and start to pull out. Then everything crashes... and this time the Fed will have no room to soften it because it didn't raise rates when things were hot, so now it has to raise rates in the middle of a recession
or the inflation will lead to immense social unrest.Boomer economics, not even once.
K
Econ-cel, can confirm.That only applies to the US and Canada. Housing costs have also gone up dramatically in Western Europe and China where there's no such zoning restrictions. OP's right that money printing is what has caused the housing bubble in every country. Notice if you look at real estate listings on almost every one you'll see "great investment opportunity!". This is because there are almost as many "investors" buying up houses as people who intend to live in them. And where did the investors get their money? From hard work? Yeah right, they get it from practically free money from the central bank.
The problem with this is A) a house isn't a fucking investment, you invest in something that is productive not a one time sale that never produces anything once it's been built. Rather it's a money-sink, something to put your almost free money into so that it appreciates in value faster than inflation. But then the problem is that 2) central banks can't keep interest rates low forever, as it drives up asset prices (and thus GDP giving the illusion of growth) while barely adding any real value to the economy. Eventually this makes the cost of living go up for workers who then struggle to make mortgage payments and start to downsize everything. Then the smarter investors realize how retarded the scheme they bought into is and start to pull out. Then everything crashes... and this time the Fed will have no room to soften it because it didn't raise rates when things were hot, so now it has to raise rates in the middle of a recession
Boomer economics, not even once.
Fractional reverse lending causes inflation in assets like houses, because the banks only have reserve rates that can be 0%. So even at a 10% reserve rate, banks create almost $1000 off just one deposit of $100. This is finite, due to wages being sticky (see the above graph) and prices being elastic, reacting to supply of cash vs the demand of the people wanting houses.
In countries like Australia, where taxes are so high, the only asset you can "invest" your money in, is investment loans for real estate, and benefit from the renters because, every other source of income, is taxed out the ass. Median income is about 40k, median house price in Melbourne is 500k.
But yes, buying real estate isn't an investment, it's a hedge against inflation, unless you become a landlord.
Hyperinflation time
we need to go la casa de papel on these mfs
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