4 ms·

I don't know why you are getting downvoted. I think this is what will happen as well. It also helps solve the pension crisis. Not that it's a "fair" solution b

• api 8y ago
  It's a more politically viable solution than large tax increases or nominal benefit cuts and a much less painful solution than default. It also "solves" the impending student loan crisis by writing down all those loans. Maybe people didn't get my rationale around housing. Put more simply I see housing inflation as the leading edge of a giant wave of inflation. Housing has inflated first because QE money first went to banks and coupled with historically low interest rates this allowed banks to pump massive amounts of money into the housing market via cheap mortgages. So the housing market is where the big wave of post-crash re-inflation money went. But houses do have a turnover rate, so the money is not going to stay there forever. All those people who made 200-600% profit on their homes will sell those homes and use the money for old age care and other personal expenses or pass it on to their children who will likely spend it. Housing may fall a bit but it's more likely that the rest of the economy will just inflate to meet it.