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If money was cheaper, all that does is flood the market with more buyers of the same small stock. That increases price.Banks making record profits that are more than necessary to cover risk, operations, and a fair return for shareholders, all at the expense of customers, especially low-income ones and mortgagors is also disgusting.
And while it isnt the sole reason for housing price increases that are becoming beyond the reach of our kids (with or without parental help), it is a contributor.
If banks want to go communist, they could make money cheaper for people entering market, but people in that situation (at least the ones who require cheaper money) are more at risk of being unable to sustain that lending. Have you not watched The Big Short?
The biggest contributor to housing prices has been for decades, supply. And as Pou may have been leading to, a big part of that is production and work opportunity. We are too suburban focused
