Tuesday, April 10, 2018
Deflation from housing
USA opinion piece with UK as case study. Until 1982 mortgages were supplied by building societies. Building societies were -not- granted the same privilege to create credit/money so finance availability was limited. After 1982 the banks, capable of creating loans ex nihilo got into the market, valuations became circular on lending, and the only limit to price increases was(is) how much debt can be sustained leading to 2008, debts can't grow, process goes into reverse ->massive government intervention.