07-16-2017, 07:48 PM
(07-16-2017, 04:02 PM)Warren Dew Wrote: The Fed's intervention has been quite effective in preventing a full return of real estate values to their long term values. I'm not saying they'll purposely do that with stocks, but when you can print arbitary amounts of money, you can inflate money valued prices arbitrarily.
Of course it has undesirable side effects, such as the stock market bubble that has accompanied the prevention of further collapse of the housing bubble, so it's better to avoid it if possible.
Low interest rates drive up the value of securities and real estate. The most obvious way to depress the value of housing is to impose rent control.
The ideal subject of totalitarian rule is not the convinced Nazi or the dedicated Communist but instead the people for whom the distinction between fact and fiction, true and false, no longer exists -- Hannah Arendt.