Imagine creating an economic system where basic necessities becoming more affordable is considered a crisis. And then gaslighting everyone into thinking this system is so perfect and wonderful and there’s no way it could ever be better.
The problem with falling house prices is for the people who recently purchased. Imagine buying a home for $500k and 1 year later you still owe $475k on it and it’s only worth $450k.
Eventually people say fuck it, and declare bankruptcy to get over an upside down mortgage.
If enough people do that then the banks fail. If enough banks fail then there’s cascading effects across the economy which can lead to mass layoffs, failing businesses, and other crises.
If collapse is what you want then yeah let then fall. But there’s a lot more pain in collapse than you realize.
Imagine creating an economic system where basic necessities becoming more affordable is considered a crisis. And then gaslighting everyone into thinking this system is so perfect and wonderful and there’s no way it could ever be better.
The problem with falling house prices is for the people who recently purchased. Imagine buying a home for $500k and 1 year later you still owe $475k on it and it’s only worth $450k.
Eventually people say fuck it, and declare bankruptcy to get over an upside down mortgage.
If enough people do that then the banks fail. If enough banks fail then there’s cascading effects across the economy which can lead to mass layoffs, failing businesses, and other crises.
If collapse is what you want then yeah let then fall. But there’s a lot more pain in collapse than you realize.
You’re talking about China, right?
Basically every nation unfortunately.