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> The former is a bubble that eventually collapses The market can remain irrational longer than you can remain solvent. There's lots of incentives from everyon
by Nextgrid 2y ago
> The former is a bubble that eventually collapses
The market can remain irrational longer than you can remain solvent. There's lots of incentives from everyone involved (all the way up to the government itself) to ensure this bubble never collapses, bending the rules and everything else around it if necessary - not too dissimilar to how the speed of light remains a static constant regardless of an observer's own speed, with space and time adjusting around them as needed to ensure this.
- ben_w 2y ago> The market can remain irrational longer than you can remain solvent. Indeed. But: > There's lots of incentives from everyone involved (all the way up to the government itself) to ensure this bubble never collapses, bending the rules and everything else around it if necessary The more this happens, the harder the resulting crash. The same argument as the Laffer curve for taxes, but for rent: when it gets to 100% of income, there's no incentive to bother immigrating, and all the reason to emigrate.