(no subject)

[feotakahari]

Thinking about how the housing crisis works, because you can’t spend a house. You can borrow money against a house, but at least theoretically, you have to pay it back eventually. So let’s say all these rich people are buying houses as investments, and they plan to sell the houses at a higher value later. Meanwhile, the rest of us can’t afford houses. So at some point, someone has to wake up and realize that the houses are only “worth” what people will actually spend on them, right? Like when NFT investors couldn’t get anyone else to buy their stupid-looking apes, and the bottom dropped out of the market.

But the government wasn’t actively trying to prop up apes, and I’ve been told homeowners support politicians who try to make homes more valuable. So how much power do politicians actually have to distort the market like that?