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Gov has been paying out lots of financial aid. Loans have had much more generous terms and lower qualifications. Some of it is propping up the real estate bubbl

by muzani 4y ago

Gov has been paying out lots of financial aid. Loans have had much more generous terms and lower qualifications. Some of it is propping up the real estate bubble. Usually the middle class are the only ones who don't benefit from it.

TekMol 4y ago
Loans: Ok, and who took the loans? And do they still have the money on their bank accounts? Real estate: Buying real estate just moves the money around. After A buys a house from B, now B has the money. Who is B?
- muzani 4y ago
  Yes. It's not that simple because the money does move. Companies that deal with conventional loans took more. So usually not the VC fuelled tech industry. Still, they spent that money. People like to think their numbers going up was a result of their product market fit and hustle, but maybe it's just that a lot of people had a lot more cash. On real estate, B was probably losing money for a while. People stopped buying/renting offices during lockdowns, some froze their house ownership ambitions, plus some countries didn't enforce laws on people who didn't pay rent for a while. So for a while it froze. Also a lot of people hoard. People take loans and then sit on the money. Some expected a recession or at least personal hardship. There was also the "Great Resignation" which might just be because some people were no longer living paycheck to paycheck. I'm also personally seeing a sharp increase in chicken and grain prices, almost double what it used to be. Blue collar salaries have gone up significantly. People are blaming the Russian war, India food shortage, China-US trade war. But I think the story is more complex.
d--b 4y ago
I think that too. It probably also fed some of the stock market, vc and crypto bubbles.
- muzani 4y ago
  That's an interesting thought. It was a direct influence on the GME stock event. Who's to say people didn't put it into crypto?

by muzani 4y ago

TekMol 4y ago

Loans: Ok, and who took the loans? And do they still have the money on their bank accounts? Real estate: Buying real estate just moves the money around. After A buys a house from B, now B has the money. Who is B?

muzani 4y ago
Yes. It's not that simple because the money does move. Companies that deal with conventional loans took more. So usually not the VC fuelled tech industry. Still, they spent that money. People like to think their numbers going up was a result of their product market fit and hustle, but maybe it's just that a lot of people had a lot more cash. On real estate, B was probably losing money for a while. People stopped buying/renting offices during lockdowns, some froze their house ownership ambitions, plus some countries didn't enforce laws on people who didn't pay rent for a while. So for a while it froze. Also a lot of people hoard. People take loans and then sit on the money. Some expected a recession or at least personal hardship. There was also the "Great Resignation" which might just be because some people were no longer living paycheck to paycheck. I'm also personally seeing a sharp increase in chicken and grain prices, almost double what it used to be. Blue collar salaries have gone up significantly. People are blaming the Russian war, India food shortage, China-US trade war. But I think the story is more complex.

d--b 4y ago

I think that too. It probably also fed some of the stock market, vc and crypto bubbles.

muzani 4y ago
That's an interesting thought. It was a direct influence on the GME stock event. Who's to say people didn't put it into crypto?