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It provides leverage for a country that otherwise only has wealth stored mostly in tradeable natural resources (natural gas, wood, and fish) and real estate. Th
by mnky9800n 2y ago
It provides leverage for a country that otherwise only has wealth stored mostly in tradeable natural resources (natural gas, wood, and fish) and real estate. The sovereign wealth fund exists to maintain the wealth of the country in the case that they are no longer able to trade natural resources or their housing market crashes and people are unable to sell their real estate for a profit anymore. It allows for them to have time to reorient their economy towards something new instead of everyone going into poverty and getting stuck there.
- glimshe 2y agoDoes the country rely on people selling real estate for profit? One of the greatest illusions of our era is that real estate prices must always go up.
- lifestyleguru 2y agoAcross entire Europe real estate is the only investment vehicle without capital gains tax. Sometimes you have to hold the real estate for some years. The general consensus is real estate market owns you compensation for currency inflation and tenants own you mortgage payments. People become aggressive if someone starts tweaking with the system. That's also why the European companies with largest market cap produce crocodile leather belts, sunglasses, and software no one understands.