Picture a 25-year-old couple in 2026. Two incomes. Solid jobs. Decent credit. They've been saving for years and they're finally ready to buy their first home.
But they lose. Outbid again and again.
Not by another young couple. Not by some family upgrading from their starter. By a 65-year-old retiree who already owns three properties and just paid cash for the fourth.
That couple isn't doing anything wrong. The market they're trying to enter just isn't the market they think it is.
Let me break this down.Houses should be getting cheaperHouses should be getting cheaper
What a house actually is nowWhat a house actually is now
The 14 percent problemThe 14 percent problem
The Austrians saw this comingThe Austrians saw this coming
What gets broken in the processWhat gets broken in the process
How you fix itHow you fix it
The sovereignty angleThe sovereignty angle
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@denlillaapan has a solution. The final solution for the 65 year old.
aaah, wets my appetite. mmmm, yeah... fried Boomer with a side of fries!
Cantillon effect needs to be more widely known and shared amongst regular people, as an explanation for asset price inflation.
Cash buys are hard to compete with. I imagine this is also common amongst people moving from much more expensive markets into cheaper ones.
Dear @denlillaapan I am that 65ish year old Boomer with three houses and cash to burn...but we are different because I understand the history and nature of fiat debt issuance and its impact on house prices over the last 40 years, and you do not.
Libertarians fail to understand they are part of the problem.
Inherently artificial markets often actually need to be regulated to prevent dysfunctional behavior.
The fiat debt issuance market for example.
'Deregulation' of it has resulted in the scenario faced by the 25 year old couple...and much larger consequences across the western world.
Liberatarians fail, repeatedly to understand the true nature of the problem because of their
blind faith in free markets...even when the 'market' is not a natural or free one, but one that is entirely a state imposed construct!
Neoliberal 'reforms' to the wests banking regulations removed the need for commercial banks to only fund productive investments- since then surprise surprise a vast quantity of fiat capital issuance debt burden has been directed upon non productive assets, primarily housing.
The west is declining in competitiveness in part at least because its bankers can issue debt toward any purpose and not only productive ones where the increase in productivity will counterbalance the debasement fiat debt issuance entails.
Under neoliberalism parasitic bankers came to own your democracies.
The decline of western civilisation was in large part enabled by our collective failure to stop this parasitic misuse of fiat debt capital issuance...or to even understand it in most cases.
Parasitic bankers who own your government are the problem- blaming Boomers is a distraction they love to see you indulging in!