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This is what happens when you allow uncontrolled and unregulated asset transfers. There's a reason that pretty much any index/stock in the world freezes when th
by SamUK96 10y ago
This is what happens when you allow uncontrolled and unregulated asset transfers. There's a reason that pretty much any index/stock in the world freezes when the daily drop exceeds a certain threshold (i.e. Japan, JPX, has a limit of usually ~7% [1]).
This prevents panic selling and even though seems like a "delaying-the-inevitable-drop" cop-out, it really does work.
Greece Government are stupid as hell for letting everybody sell their homes all at once. Mass selling off in a region will just cause the housing market to death spiral, just like it does with stocks.
[1]http://www.jpx.co.jp/english/equities/trading/domestic/06.html http://www.jpx.co.jp/english/equities/trading/domestic/06.ht...)
- simosx 10y agoArticle is bad article. It does not filter through inheritances that may not be worth the money to pursue.
- mvindahl 10y agoI'm not sure that it would be just as easy to do this for houses. Freezing the market for a day would have little effect. Freezing it for years would be a very real nuisance. Besides, I'd like to question the conventional wisdom that falling stock markets or falling housing markets are a problem which justifies government intervention. Another view on the same phenomenon is that your cash just increased in value. Like when prices go up, some people will lose money, some people will win money. In the end it's a zero sum game.
- TorKlingberg 10y agoYou cannot reasonably charge high property taxes and then stop people from sell property they do not want.
- cgio 10y agoBy imposing high property taxes you make selling harder.
- hx87 10y agoOTOH, if you impose high holding costs while disallowing trading, you will have either foreclosures, property abandonment or squatting on a massive scale, which are arguably worse.