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Inequality is the problem because everything happens in a single market. Rich people push the real estate market high and suddenly no affordable housing exists.
by H8crilA 7y ago
Inequality is the problem because everything happens in a single market. Rich people push the real estate market high and suddenly no affordable housing exists.
I actually think that the FED is largely responsible for this setup. Unintended consequences of QE and cheap money - everything is now expensive. Same as the seeds for 2008 were laid out in the post-dotcom ultralow interest rates.
- dragonwriter 7y agoCongress is responsible, because the reason the Fed had to push so heavily on blunt monetary policy levers is because Congress has been asleep at the switch on more targetable fiscal policy remedies to economic problems. Monetary policy alone is useful for smoothing some of the edges of business cycles, but it's not—and not intended to be—the alpha and omega of economic policy.
- H8crilA 7y agoConcurrence has been reached, sir. I am (mostly because I like interesting things) hoping to see the most stupid form of fiscal stimulus in the next deflationary recession - money handouts. It'd be interesting to see what happens if instead of buying $300B worth of bonds the FED with the help of the Treasury just airdrops $1000 into each citizen's bank account. Perhaps start with $100 and see how it goes. Anyhow, not sure if with this polarity the authorities could reach consensus on such drastic measures.