4 ms·

Yogi Berra famously said something like "Nobody goes to that restaurant anymore, it's always too crowded". It takes similar logic to claim there's a mass migra

Yogi Berra famously said something like "Nobody goes to that restaurant anymore, it's always too crowded". It takes similar logic to claim there's a mass migration away from places with high housing prices. Prices are high because more people want to live there than want to leave. If more people wanted to leave, prices would fall. That's not a pyramid scheme, it's supply and demand.

ClumsyPilot 5y ago
> Prices are high because more people want to live there than want to leave Or it could be super-low interest rates and banks giving mortgages to every stripper and then flogging them off to clueless investirs as AAA-rated securities like they did before 2008. Or it could be because we allow foreign 'investors' to launder drug-money, blood-money ads tax-avoidance money by buying luxury apartments by the dozens and leaving them empty and unused. Or it could be outright collusion and fraud by developers or market makers. Or a hubdred other things economists write papers about - beloved 'free market' is more than one equasion.
- mtoner23 5y ago
  The reality is that's not happening today, the creditworthiness of borrowers in 2021 was higher than it's ever been. Demand is completely outstripping supply right now.
  - voisin 5y ago
    Source re creditworthiness? I’ve seen headlines stating the indebtedness of Canadians relative to income has never been higher.
    - DwnVoteHoneyPot 5y ago
      Both things are happening. Credit scores have improved during the pandemic. Less missed payments, less spending (maybe because people are home more), plus more government assistance. While credit cards and credit lines are doing better, mortgages have increased, causing debt to income to be very high.
- fknorangesite 5y ago
  > banks giving mortgages to every stripper Wh...what is this? Do strippers not deserve mortgages? What a weirdly specific example.
  - erik_seaberg 5y ago
    As cash-rich contractors, they were lucrative customers for expensive subprime adjustable-rate mortgages once underwriters stopped verifying steady employment income. somewhat NSFW: https://youtu.be/MesrrYyuoa4?t=181 https://youtu.be/MesrrYyuoa4?t=181
  - voisin 5y ago
    Not OP, but generally banks look at stability of income and I think the implication here, as in the 2008 financial crisis, is that strippers and other grey area employees don’t have as reliable income given the cash payments (and likely lack of fully reporting income to the government).
  - nsv 5y ago
    There's a famous scene in the movie "The Big Short" where a character is talking to a stripper about her investment properties. The movie is about the 2008 housing bubble.
mgh2 5y ago
You can manufacture demand with propaganda and money laundering. Unlike the US which is driven by industry, Canada's real estate market is not [1] https://news.ycombinator.com/item?id=30208224 https://news.ycombinator.com/item?id=30208224 [2] https://news.ycombinator.com/item?id=16417623 https://news.ycombinator.com/item?id=16417623 [3] https://news.ycombinator.com/item?id=18319568 https://news.ycombinator.com/item?id=18319568 [4] https://news.ycombinator.com/item?id=30397365 https://news.ycombinator.com/item?id=30397365
deleted 5y ago
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ClumsyPilot 5y ago

> Prices are high because more people want to live there than want to leave Or it could be super-low interest rates and banks giving mortgages to every stripper and then flogging them off to clueless investirs as AAA-rated securities like they did before 2008. Or it could be because we allow foreign 'investors' to launder drug-money, blood-money ads tax-avoidance money by buying luxury apartments by the dozens and leaving them empty and unused. Or it could be outright collusion and fraud by developers or market makers. Or a hubdred other things economists write papers about - beloved 'free market' is more than one equasion.

mtoner23 5y ago
The reality is that's not happening today, the creditworthiness of borrowers in 2021 was higher than it's ever been. Demand is completely outstripping supply right now.
- voisin 5y ago
  Source re creditworthiness? I’ve seen headlines stating the indebtedness of Canadians relative to income has never been higher.
  - DwnVoteHoneyPot 5y ago
    Both things are happening. Credit scores have improved during the pandemic. Less missed payments, less spending (maybe because people are home more), plus more government assistance. While credit cards and credit lines are doing better, mortgages have increased, causing debt to income to be very high.
fknorangesite 5y ago
> banks giving mortgages to every stripper Wh...what is this? Do strippers not deserve mortgages? What a weirdly specific example.
- erik_seaberg 5y ago
  As cash-rich contractors, they were lucrative customers for expensive subprime adjustable-rate mortgages once underwriters stopped verifying steady employment income. somewhat NSFW: https://youtu.be/MesrrYyuoa4?t=181 https://youtu.be/MesrrYyuoa4?t=181
- voisin 5y ago
  Not OP, but generally banks look at stability of income and I think the implication here, as in the 2008 financial crisis, is that strippers and other grey area employees don’t have as reliable income given the cash payments (and likely lack of fully reporting income to the government).
- nsv 5y ago
  There's a famous scene in the movie "The Big Short" where a character is talking to a stripper about her investment properties. The movie is about the 2008 housing bubble.

mgh2 5y ago

You can manufacture demand with propaganda and money laundering. Unlike the US which is driven by industry, Canada's real estate market is not [1] https://news.ycombinator.com/item?id=30208224 https://news.ycombinator.com/item?id=30208224 [2] https://news.ycombinator.com/item?id=16417623 https://news.ycombinator.com/item?id=16417623 [3] https://news.ycombinator.com/item?id=18319568 https://news.ycombinator.com/item?id=18319568 [4] https://news.ycombinator.com/item?id=30397365 https://news.ycombinator.com/item?id=30397365

deleted 5y ago

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