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Yeah, I guess I meant that house prices would crater. Obviously some people benefit from that and some don't. My intuition is that it would also precipitate an
by toasterlovin 9y ago
Yeah, I guess I meant that house prices would crater. Obviously some people benefit from that and some don't.
My intuition is that it would also precipitate an economic downturn. Many households will see a drastic deterioration of their balance sheets, which should act as a damper on consumer spending. Which would, in theory, have 2nd order effects on the real estate market...
- kurthr 9y agoPeople won't be able to borrow against their lost wealth either (or only at very high rates). Builders/Flippers will stop spending and so the construction trades will suffer a lot... ditto RE sales people and their 6% commissions. I don't think inflation would be high for long.