Previous generations decided real estate should be an "investment" instead of a place to live,
No.
The insane housing bubble, and the Global Financial Crisis of 2008/2009 were both caused by the fact that the world money-system is, in essence, a Ponzi scheme that relies upon ever-increasing world debt in order to continue to function. Everything else is downstream from that, including the desire of the global elites to push us in to a "Great Reset" so they can scrap the current end-of-life money system for a new one that perfects their control over us as bond-slaves tied to their social order forever.
You're applying opinion and conjecture to a factual problem.
Mortgages were bundled into mortgage backed securities in the 70s. As the prices inflated from easy money coming from MBS in the 2000s, GenX and Boomers started flipping houses out of their greed. So the statement is true that previous generations turned houses into an investment.
The easy money scenario was entirely created when Wall Street banks lied to pension funds about MBS safety to create the easy money. No one complained, everyone wanted to make money, and actual homeowners were left holding the bag when the crash happened in 2008.
Home prices were just about right in 2012-2013, but we couldn't have that, now could we? Boomers and GenX WANT their houses to be an investment, to rise by 4-10% per year like the stock market, which is when QE started ramping up.
Now instead of Wall Street acting alone, the Fed is just printing money to buy the mortgage backed securities, over $2 Trillion worth, which has created another easy money scenario, aka housing bubble 2.0. And young people are once again fucked by their elders' greed.
If the Fed takes their foot off the gas pedal and lets interest rates rise, RE will crash through the floor, "ruining the retirement" of millions of Boomers and GenX.
You're applying opinion and conjecture to a factual problem.
It's really simple.
If a central bank creates $100 (in the form of a debt-money repayable "loan"), and expects $100.10c in repayment later, where does the extra 10c come from?
No.
The insane housing bubble, and the Global Financial Crisis of 2008/2009 were both caused by the fact that the world money-system is, in essence, a Ponzi scheme that relies upon ever-increasing world debt in order to continue to function. Everything else is downstream from that, including the desire of the global elites to push us in to a "Great Reset" so they can scrap the current end-of-life money system for a new one that perfects their control over us as bond-slaves tied to their social order forever.
Everything else is just noise.
You're applying opinion and conjecture to a factual problem.
Mortgages were bundled into mortgage backed securities in the 70s. As the prices inflated from easy money coming from MBS in the 2000s, GenX and Boomers started flipping houses out of their greed. So the statement is true that previous generations turned houses into an investment.
The easy money scenario was entirely created when Wall Street banks lied to pension funds about MBS safety to create the easy money. No one complained, everyone wanted to make money, and actual homeowners were left holding the bag when the crash happened in 2008.
Home prices were just about right in 2012-2013, but we couldn't have that, now could we? Boomers and GenX WANT their houses to be an investment, to rise by 4-10% per year like the stock market, which is when QE started ramping up.
Now instead of Wall Street acting alone, the Fed is just printing money to buy the mortgage backed securities, over $2 Trillion worth, which has created another easy money scenario, aka housing bubble 2.0. And young people are once again fucked by their elders' greed.
If the Fed takes their foot off the gas pedal and lets interest rates rise, RE will crash through the floor, "ruining the retirement" of millions of Boomers and GenX.
It's really simple.
If a central bank creates $100 (in the form of a debt-money repayable "loan"), and expects $100.10c in repayment later, where does the extra 10c come from?
I'll wait.
It is indeed simple.
That 10 cents has to created by other loans to pay back the first loan.
But the real mindjob is that the opposite also happens. Once that $100.10 of that original is paid back, all of that money is "destroyed."
This means that new loans have to be continuously be made or the money supply will contract on its own.