In Perspective, Planet: Where The Street is home!

[James Lemon]

Pardon my irony, but I thought you advocated the free market and less government.

And it may indeed be a bit too simple. Social housing used to be in large quantities in France, but slowly degenerated into areas where nobody wanted to live.

I would say that free market systems solve problems yes. I would advocate for responsible government. I will also suggest that government's authority to force lower underwriting standards in the business of housing finance created these problems in the first place.

 

[James Lemon]

Isn’t this why real value of money is said to about halve every 7 years?

No total money is lost, just the balloon has a lot of air. The amount of plastic in the ballon is pretty static. Of course real work and real raw material can generate more plastic as always.

“Air” just increases apparent status!

Asher

Some don't need labor or raw materials to create wealth when they can make a billion with a touch of a button.

 

[Asher Kelman]

Some don't need labor or raw materials to create wealth when they can make a billion with a touch of a button.

Such as what?

 

[Jerome Marot]

I would say that free market systems solve problems yes. I would advocate for responsible government. I will also suggest that government's authority to force lower underwriting standards in the business of housing finance created these problems in the first place.

Government does not force lower underwriting standards. Actually, without the government there would be no underwriting standards at all and banks would be free to set the level of risk under which they lend money. Therefore, the government writes underwriting standards at a given level (which may be lower for housing or not) and banks are free to lend money at or above that standard.

Interestingly, in Europe at least, governments have tried to motivate banks to lend money to entrepreneurs but the banks stay quite timid and prefer the housing market.

Meanwhile, in China...