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Unfortunately, the way financialization works, we should expect this to lead to a bump in home prices that roughly perfectly offsets the increased buying power
by burlesona 4y ago
Unfortunately, the way financialization works, we should expect this to lead to a bump in home prices that roughly perfectly offsets the increased buying power created by this financial instrument. The only long-term solution to affordable housing is abundant supply.
- walkhour 4y agoSomeone said a few posts ago housing can't be affordable and a good investment. This is just madness, house prices are guaranteed to go up and affordability is likely to increase zero.
- joecot 4y agoPumping government money into private markets always works this way. A good example of this is the TV digital converter boxes, when we switched the airwaves from analog to digital. Those boxes were only 10 or 15 bucks or so. But then the government gave everyone vouchers for 40 bucks for a converter box. So, guess what? All the converter boxes were 40 bucks, or more. Because they could be. It was free money. The money would've been far better used by the government just giving the converter boxes directly.