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As the author of original comment I have nothing to add to this. Explained perfectly.
by ivan_gammel 3y ago
As the author of original comment I have nothing to add to this. Explained perfectly.
- singleshot_ 3y agoSo what's your take on mortgages? If my house happens to be underwater after the Purge or whatever we're calling your rearrangement-of-the-markets, am I just trapped there until I pay off the loan? Pretty dismal if so.
- ivan_gammel 3y agoProperty bubble bursts happened before and margin calls happened before. Investors who borrow the money must always consider the risk of market going down for various reasons. But realistically, a SOE intervening on the market won’t be able to create an oversupply in years. More likely it will require decades — long enough to pay significant part of the mortgage and balance the remainder with current prices.