3 ms·
So... It's a self-correcting problem that will naturally find some equilibrium? The price goes up, it becomes worth using as a bank, but eventually bank usage l
by setr 7y ago
So... It's a self-correcting problem that will naturally find some equilibrium? The price goes up, it becomes worth using as a bank, but eventually bank usage leads to price reduction and thus not as valuable as a bank.
I'm not clear how you conclude regulation is needed; self-regulating systems are exactly where gov intervention is not required.
- imgabe 7y agoYou're missing the part where the correction involves the economic collapse of a major city.
- yathern 7y agoI don't know if 'desirable neighborhood becomes less desirable because of over-gentrification' is necessarily 'economic collapse of a major city'.
- imgabe 7y agoEven if it doesn't take out the whole city because no one can afford to live there, the people governing the city have a duty to represent the interests of the people who live there. Generally (well, tautologically), people are interested in living in desirable areas. What is the benefit to the citizens of the city of allowing homes in those areas to be used as investment vehicles for wealthy foreigners? Why should they care at all about the interests of people who aren't going to live there? Prioritize people who actually live there and if some billionaire who lives somewhere else absolutely must have a pied-a-terre, they can pay 20% or 50% or however much of the value of the home each year for the privilege.
- unethical_ban 7y agoThe "self regulation" has the lag time where neighborhoods get ruined and housing goes to waste for the benefit of the ultra-rich to stick their money in a place where it is doing harm to society.