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Housing prices exploded to compensate for the negative real interest rates. The people who got the handouts were rich people who owned multiple houses and sold
by notch656a 4y ago
Housing prices exploded to compensate for the negative real interest rates. The people who got the handouts were rich people who owned multiple houses and sold them off. For the most part others didn't get that hot of a deal. In effect it was a regressive tax that the poor paid for the rich by paying in inflation the cost to make multi-home owners rich.
- onlyrealcuzzo 4y ago> For the most part others didn't get that hot of a deal. How? Dollars are worth $0.5 in 1990. Yet your mortgage payment is unchanged. Your house payment is much less. Rents are much higher. You won.
- notch656a 4y ago>Housing prices exploded to compensate for the negative real interest rates. They didn't "win." They broke even. The people that sold them won. The people with no house but inflated away cash/salary lost.
- onlyrealcuzzo 4y agoIf your payment is massively lower than your rent would be - you won. Someone else is allowed to win, too. It's a zero sum game, and the only losers have been renters. That can change if there's a massive, sustained housing crash. But I won't hold my breath for that. I'm willing to bet, like always, house prices won't decline. The value of the dollar will decline instead (because the Fed can just easily QE until the only people that lose are renters).