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There were structural/regulatory reasons that helped the bubble grow last time, are there any indications of this now? If they are there we probably won't know
by pastaguy1 4y ago
There were structural/regulatory reasons that helped the bubble grow last time, are there any indications of this now?
If they are there we probably won't know until it's too late, but this housing bubble feels a little more like an everything bubble
- redisman 4y agoArtificially low interest rates for a decade could have a similar effect
- pas 4y agothe inflation target was barely met (and according to arguments about service degradation) it was undershot, so no, the interest rate was not too low. (there's no non-artificial rate in a central bank managed economy)
- imtringued 4y agoYou mean artificially high interest rates. If interest rates fell negative then the money supply would shrink and there would be less unneeded money to speculatively buy houses with. Alas, we live in a world in which negative interest rates were banned and therefore the money supply and economy must constantly grow to raise interest rates above 0%. I find it frustrating that people ignore basic market principles when it is inconvenient for them. Like, people get richer (everyone is saving incredible amounts of money), the population is no longer growing, there are fewer and fewer investment opportunities and yet for some reason, people think they have a god given right to high interest rates anyway, even when those are impossible to pay without inflation.