3 ms·
Covid and the subsequent recovery was and is definitely K shaped. Someone with a house and assets has crushed it. Those without have only fallen further behind.
by matwood 2y ago
Covid and the subsequent recovery was and is definitely K shaped. Someone with a house and assets has crushed it. Those without have only fallen further behind.
- kwanbix 2y agoYes, COVID made it even worst. But this has been happening since before COVID.
- matwood 2y agoYes, I would say COVID accelerated what was already happening.
- acchow 2y agoYou nailed it. This was the case across all developed economies, a direct result of money printing. You did especially well if you had assets bought with borrowed money since your gains were leveraged and your loan principal inflated away.
- kwanbix 2y agoCOVID only made it worst, as companies took advantage of COVID to inflate prices.
- matwood 2y agoExactly. And I'll brag and be frank at the same time. I couldn't afford to buy my house today in the US. I have no idea how new people afford to move into my neighborhood. But since I bought it at the end of the GFC and refied to 3% at some point, I have that house and now a house in Europe that I paid cash for that I'm in the process of renovating. That one bit of leverage I was able to grab onto in 2011 led to big changes over 10-15 years. I don't see that same opportunity for a lot of young people now, and that's a problem.