Saturday, July 9, 2016

Economic Bubbles

So there's a saying that the value of real estate will never go down, because population is increasing and there will never be more land.

That statement has a few caveats that are never mentioned.

One: Population may not always increase. Has anyone done a study on housing prices after the 1918 Spanish flu?

Two: Valuations are not the same as true value. There are many illusory things floating around this world.

Three: Never trust a corporate banker.

Yeah, everyone wants their piece of the American dream and thinks it's going to happen because of a great job they got or a new person they met or their beautiful new baby.

The American "dream" requires community, sacrifice, incessant effort.

A dream where some privileged people keep the spoils is no community in any legitimate sense.

There are few vectors towards unhinging this shingle. It will take a deep analysis to bridge.

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