4 ms·
Wages are moving down in real terms. Many home purchases are made with 40% of gross income presently. Increased (3x) home costs would mean buyers would be payin
by cudgy 4y ago
Wages are moving down in real terms. Many home purchases are made with 40% of gross income presently. Increased (3x) home costs would mean buyers would be paying out an even higher percentage of gross income. Eventually too many buyers are unable to buy housing and the party is over. I think we are already there, so 3x housing prices (and 3x rental prices) in 10 years seems very unlikely.
- nemo44x 4y agoThe printer will go burr and wages will increase because a load of bread is $10. Most of todays debt will be wiped out.
- cudgy 4y agoThe burr of the printer will only make the spread between wages and costs even worse. Only fixed rate debt will be eroded by inflation; variable rate and short-term debt will step up to higher rates.