> What you're describing sounds exactly like the housing market under the rule of cheap mortgages and speculative investment. People having a hard time getting

> What you're describing sounds exactly like the housing market under the rule of cheap mortgages and speculative investment. People having a hard time getting in, people having a hard time getting out without going bankrupt, these are all exactly what happened in the "free" housing market during the last decade. I don't see the same effects you mention. If we talk pre-2008, getting in was too easy. Post-2008, to 2012 the market had a typical rebound curve, those were all good times to jump in. Now its expensive again, which means demand has to subsidize and start balancing out with the supply. In 2009 i used to say argentina RE prices were too high for the population, and that some crash should happen. 2017 and it hasn't happened: its possible house prices as they are now are here to stay for a long time. > Anyway I don't understand how this program "avoids" market behavior. It tries to set its own prices by means of insurance. By making a fund that caps wins and losses, it doesn't prevent them, it just distributes them differently. There is pervasiveness to the concept of "you can't beat the market": it means that if you are, you are absorbing some risk or cost you don't see. i.e.: What if a crisis happened that lowered house prices 40% across the board: 100% of the community wants to sell in the fund, which has capped losses, and then buy property again, to make a neat 15%. Moroever if the market goes up, as soon as the market shows 25% improvement, there is a great incentive to sell, because your gains are capped. So when you are close to that limit, your biggest interest is to sell, specially if property taxes adjust to a standard different from the one the fund uses. Not to mention that you have to pay the people managing this fund one way or another: their labor does not come free. These are all risks and consequences that exist on that management style alone. > In your mind, is the free market somehow incomplete without a rentier class? Not at all. And in this fund case, the fund managers are the rentiers.