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> not structural or risky behavior from investment banks in 2007 I don't see it that way at all. Over the last couple years, we've seen an explosion in private
by peterlk 4y ago
> not structural or risky behavior from investment banks in 2007
I don't see it that way at all. Over the last couple years, we've seen an explosion in private capital investments, NFT and crypto fads (questionable, but I would argue that these were large enough to be considered structural), greatly increasing home prices, supply chain disruptions, the war in ukraine (and all its knock-on effects). Things are a bit topsy-turvy, and I am hesitant to write off all of these things as "not structural".
- tdhz77 4y agoThe values of homes went up during the pandemic because people were in their homes. The extra savings of not going out to eat, vacations, etc.. enabled people to reason that paying for more of a house to fit their work from home lifestyles worth it. When you add that plus the historically low interest rate it was a tour-de-force. You might be on to something that it might be more structural now than how I originally thought. People are locked in homes that might be another housing crises, and if we start having job loss we could see something ugly like 2007. Again, I remain hopeful that salaries are up and unemployment is low. On the positive side, the US is better off inflation-wise in the United States than in Europe.
- Enginerrrd 4y agoThe only structural issue I'm concerned about is years of cheap debt. As a result we've seen a lot of growth in debt across individuals, corporations, and governments, and I wonder what happens when we reach a point where debt simply stops growing significantly.