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There is real value there. American tech sells things people actually want. And, indeed, we even saw home prices fall quite considerably when that real value c
by randomdata 2y ago
There is real value there. American tech sells things people actually want.
And, indeed, we even saw home prices fall quite considerably when that real value creation was at its peak (iPhone, Facebook, etc.) as the money started wanting to buy what that real value had to offer.
I think it is fair to say since that peak we've seen more speculation than actual value creation, but that's why money is taking more interest in housing again. Still, the US is in a better place than many OCED countries with respect to housing thanks to still seeing some real value creation (and more of it, relatively speaking).
- bumby 2y agoI'm not implying there is no value. I'm drawing a distinction with high-PE industries, like tech, where the market value is highly biased to future (unrealized) potential. Previous generations, where hardware manufacturing was the dominant industry, had "value" more tightly coupled to realized value.
- randomdata 2y agoMeaning that the 'fake' student loan value is not limiting itself to housing, but also propping up the stock market? I think that's fair.
- bumby 2y agoThat’s not my claim, but it would seemingly follow with your hypothesis (along with a range of other asset classes). The tough part is actually showing good data of the causal relationship.