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Isn't that exactly what happened with home ownership? Everyone levers up to buy a home, real estate goes into a bubble, and when it would normally crash, the go
by SilasX 6y ago
Isn't that exactly what happened with home ownership? Everyone levers up to buy a home, real estate goes into a bubble, and when it would normally crash, the government comes out in force with grants and easy credit programs ("Making Home Affordable" etc) because those malinvestors dominate the voting pool.
- imtringued 6y agoThat's basically the reason why interest rates should be above 0% right now. Inflation is mild but it is still higher than 0%. I consider it extremely foolish of the Fed that the interest rates aren't at least at 0.5% just to send a signal that the easy money is slowly disappearing. That easy money is driving malinvestment and it will just fuel any future bubble that inevitably ends up popping.