4 ms·

That is quite a good way of putting things in perspective about Fed and free money building up the asset bubble, which is only made worse by stricter zoning law

by sremani 10y ago

That is quite a good way of putting things in perspective about Fed and free money building up the asset bubble, which is only made worse by stricter zoning laws and NIMBY. As far as downvotes go, HN leans left, that is not news, any conservative or libertarian views will collect the usual down votes. Strangely it happens in bunches too.

StanislavPetrov 10y ago
It isn't a left or right issue, its a reality issue. We in the USA do not have a free market, where prices are determined by market forces. Whether or not this is a good or bad thing is a completely different debate. The FED does not hide the fact that it buys MBS (mortgage backed securities) to prop up the housing market. This is the opposite of a free market (and only one of many ways the market is controlled). This isn't up for debate among members of the reality-based community. https://www.newyorkfed.org/markets/ambs/ambs_faq.html https://www.newyorkfed.org/markets/ambs/ambs_faq.html >The Federal Open Market Committee (FOMC) directed the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York to purchase additional MBS and longer-term Treasury securities (see http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm http://www.federalreserve.gov/monetarypolicy/fomccalendars.h... for the most recent FOMC statement). The FOMC also directed the Desk to maintain its existing policies of reinvesting principal payments from the Federal Reserve’s holdings of agency debt and agency MBS in agency MBS and of rolling over maturing Treasury securities at auction. The FOMC noted that these actions should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.
dpc59 10y ago
If you lean left you shouldn't be arguing for rent collecting oligopolies.
- progressive_dad 10y ago
  I believe the standard "party line" on housing costs would be something akin to Sweden. Purchasing a property for the explicit purpose of renting it is de-facto barred. Its not illegal but must be approved by your local tenant/owner association (like a condo board or home owner's association). This has the net effect of raising rents, making it extremely difficult to rent in the first place, while keeping home ownership within reach for nearly everyone due to depressing any kind of housing bubble or gentrification through property acquisition and flipping. https://www.justlanded.com/english/Sweden/Sweden-Guide/Property/Buying-property https://www.justlanded.com/english/Sweden/Sweden-Guide/Prope...
dpc59 10y ago
If you lean left you shouldn't be arguing for rent collecting oligopolies.

by sremani 10y ago

StanislavPetrov 10y ago

It isn't a left or right issue, its a reality issue. We in the USA do not have a free market, where prices are determined by market forces. Whether or not this is a good or bad thing is a completely different debate. The FED does not hide the fact that it buys MBS (mortgage backed securities) to prop up the housing market. This is the opposite of a free market (and only one of many ways the market is controlled). This isn't up for debate among members of the reality-based community. https://www.newyorkfed.org/markets/ambs/ambs_faq.html https://www.newyorkfed.org/markets/ambs/ambs_faq.html >The Federal Open Market Committee (FOMC) directed the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York to purchase additional MBS and longer-term Treasury securities (see http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm http://www.federalreserve.gov/monetarypolicy/fomccalendars.h... for the most recent FOMC statement). The FOMC also directed the Desk to maintain its existing policies of reinvesting principal payments from the Federal Reserve’s holdings of agency debt and agency MBS in agency MBS and of rolling over maturing Treasury securities at auction. The FOMC noted that these actions should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.

dpc59 10y ago

If you lean left you shouldn't be arguing for rent collecting oligopolies.

progressive_dad 10y ago
I believe the standard "party line" on housing costs would be something akin to Sweden. Purchasing a property for the explicit purpose of renting it is de-facto barred. Its not illegal but must be approved by your local tenant/owner association (like a condo board or home owner's association). This has the net effect of raising rents, making it extremely difficult to rent in the first place, while keeping home ownership within reach for nearly everyone due to depressing any kind of housing bubble or gentrification through property acquisition and flipping. https://www.justlanded.com/english/Sweden/Sweden-Guide/Property/Buying-property https://www.justlanded.com/english/Sweden/Sweden-Guide/Prope...

dpc59 10y ago

If you lean left you shouldn't be arguing for rent collecting oligopolies.