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Ireland was also a traditional 2007 housing bubble ;-) Sure, it was a housing bubble that popped around then. My point was that it wasn't fancy financial instr
by rmc 14y ago
Ireland was also a traditional 2007 housing bubble ;-)
Sure, it was a housing bubble that popped around then. My point was that it wasn't fancy financial instruments or arcane hidden scams that broke it, it was an old fashioned "This thing (property) can only go up in value! Invest in it now, keep making more of those things (houses), invest now and you'll be able to flip your asset later for a higher price! It can't go down in value!" type bubble.
If everything was on bitcoin, you still could have had the irish property bubble happen, just like how there was bubbles like that when the currencies were gold based.
- digitalengineer 14y agoI have to respectfully disagree, …the expansion of money through debt is unsustainable and necessarily fuels and creates economic bubbles. This concentrates wealth in the hands of private banks as the populace is forced into debt simply to own a home and educate their children, hoping that the loans can be repaid by others going into debt in greater amounts later to purchase the assets they themselves have purchased through incurring large amounts of personal debt. However, debt expansion leads to price appreciation of assets through speculation as the financial market becomes riskier and this process is unsustainable in the long run, with the last cycle of indebted being wiped out when they cannot find anyone to buy the assets they themselves have purchased by going into massive debt. http://wiki.mises.org/wiki/Criticism_of_fractional_reserve_banking http://wiki.mises.org/wiki/Criticism_of_fractional_reserve_b...