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168 sats \ 2 replies \ @Scoresby 11h \ on: Why Have Homes Become So Unaffordable? Politics_And_Law econ

When credit is mandated and subsidized, the price goes up.

And this is mostly what our government has been doing for the last two decades. And still are doing:

Lower 10-year yields help US households take out home equity loans to fund greater consumption...Therefore, Bessent will use the RMP and buy backs to purchase 10-year treasuries and reduce mortgage rates. -Arthur Hayes

Same dynamic as higher end: give everyone a subsidized (nay, guaranteed!) loan to pay for college and all of a sudden college costs WAY more than makes sense.

Sure houses are nicer/bigger/better than they were -- as are college dorms and cafeterias -- but that's because all of a sudden everyone could pay for more. So everybody does pay for more and voila, it costs more.

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203 sats \ 1 reply \ @SimpleStacker 11h

Healthcare too. Subsidize insurance and all you get is the same amount of healthcare but for higher cost

So many of our society's ills are symptoms of peak fiat

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113 sats \ 0 replies \ @Undisciplined OP 11h

Yeah, but healthcare sucks. Even with insurance I never want to use healthcare services because they're so miserable and useless most of the time.

At least with those other things you get more up front.

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