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> When the line stops or starts to go down, then bad things happen Only because many millions bought risky investments since they were told it was basically ri
by Jensson 1y ago
> When the line stops or starts to go down, then bad things happen
Only because many millions bought risky investments since they were told it was basically risk free. Normally things getting cheaper is a good thing, but we tricked people into thinking that housing being expensive is good for them.
- lazide 1y agoThis is true literally everywhere, in every country (and under every gov’t) I’ve ever seen. And I’ve seen a lot. If you think US property prices are nuts, look in Europe, Asia (especially East Asia), etc. Most people take crazy risks to buy the most/nicest house they can get a loan for because where you live is a huge factor for a number of other things in people’s lives. If people will give them loans for more than they can afford, many people will still do it. So easy credit? Housing market goes up. Tough credit? Housing market goes down. All things considered anyway. Eventually. Owners have a very, very strong incentive to stop it from going down, so unless they have to move, the market can stay locked up for a long time.