4 ms·
We just printed $6T but the amount of land didn't change. Why would land prices go down?
by rcpt 7y ago
We just printed $6T but the amount of land didn't change. Why would land prices go down?
- lotsofpulp 7y agoIt depends how much of that $6T lands in the hands of people buying land (in the near future).
- toomuchtodo 7y agoLand prices are tied to wages. Wages and employment goes down, value of land goes down. Unless the Fed starts buying up land directly, or using REITs.
- nostromo 7y ago> Unless the Fed starts buying up land directly, or using REITs. This is happening. The Fed is buying mortgage backed securities. In other words: the Fed is buying real estate.
- amiga_500 7y agoBecause much of the "value" presently seen is speculative, and there are many reasons not to be bullish for the next couple of years.
- bolasanibk 7y agoI agree. Individuals might not be able to afford land. But large corporations will definitely be able and more than willing to.
- saati 7y agoApple won't buy up a lot of residential real estate.
- adrr 7y agoNeeds to end up in people's pockets for land prices to go up.
- defertoreptar 7y agoIf there were no worry of a recession, then land and other asset values would increase. The $6 trillion is meant to offset possible deflation and keep inflation on course for 2%.