Amateur Hour Continues

Debt, interest rates, etc. are all artificial constructs.

You think I'm worried about debt and interest rates as constructs? I'm worried about what they represent. If the federal reserve hadn't spent the last 50 years inflating the housing market, what would it look like today? Do you think housing would be more affordable to the poor and middle class or more expensive? Say housing prices are 50% higher than they would have been with a laissez faire fed, is that real to people or is that just a construct?
 
  • Like
Reactions: Sandman 423
You think I'm worried about debt and interest rates as constructs? I'm worried about what they represent. If the federal reserve hadn't spent the last 50 years inflating the housing market, what would it look like today? Do you think housing would be more affordable to the poor and middle class or more expensive? Say housing prices are 50% higher than they would have been with a laissez faire fed, is that real to people or is that just a construct?
I don't know, what is housing ownership now compared to 1910?
 
I don't know, what is housing ownership now compared to 1910?
You mean in a time before Federal Income Tax, a whole slew of other taxes and government social programs? When our country was much more agrarian and less urban?

You might as well ask about the cost of property on Mars for comparison sake.
 
You mean in a time before Federal Income Tax, a whole slew of other taxes and government social programs? When our country was much more agrarian and less urban?

You might as well ask about the cost of property on Mars for comparison sake.
and before the Fed.
 
I don't know, what is housing ownership now compared to 1910?

What are you driving at? You think that the Fed is the reason home ownership rose? OK. Is that a good thing? If housing is 50% more expensive but we went from 48% home ownership to 65%, is that a good tradeoff? I don't think that it is. I'd rather rent the same house for $1000/month than own at $1500/month. Take that extra $500/month and invest it in an index fund. After 30 years at 8% interest, that's $750k.

Doesn't appear that the creation of the Fed had an impact on home ownership. The post-WWII boom seemed to be when those numbers exploded.

1577204328994.png
 
Last edited:

VN Store



Back
Top