Comments by "" (@jmitterii2) on "Hamish Hodder"
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Let's not pretend those factors mentioned regulate them in any desirable way.
Otherwise we wouldn't have the fucking mess we have world wide. Besides a few places that... oh they don't pretend construction industry, inventory adjustments, rental market, property market magically regulate themselves... such hog wash Milton Fried quack pot nonsense.
AT no point in any historical time when housing was actually affordable to the vast majority, did we just pretend markets run best and these factors "Self regulate' okay they did and they often did it horribly; feudalism comes to mind. But even past feudalism, you had massive emigration to places like Canada, USA, Australia, etc. where in starting in the 1860's the Homestead Act gave away free land to anyone wanting to homestead... also Land Grant Acts starting in the 1860's gave money to such persons either homesteading or buying lots to actually build on those properties; shops, blacksmiths, stables, houses, farms, etc.
And again, horrible times hit latter parts of the 1800's and into the 1900's where housing became very costly... the great depression 1929 gave way to Hoovervilles but most people in the USA were already poor. So what did they do? Many lived in "cabins"... okay they were literally dirt floor shacks made of plywood with a caste iron stove for cooking and heating.
By about 1935 you get the HUD programs that continued, but mostly phased to nothingness by the 1980's... but these HUD programs and the way were implemented; the city developed the lots placing sewer, water, and electrical distributions on the lots; subsidizing these costs; that the buyers and renters of these properties would later pay in terms of property taxes. Same property tax that exists today, but we all got the benefit of affordable housing. NOW it's done by let it be markets. Private developers are tasked to do all the roads and utilities, and at specifications to the local utility companies or organizations, these private developers than pass that cost on to the lot buyer. No subsidy anymore. But that property tax... still there.
Vienna Austria also has a good program that they still conduct today. Best in the world really.
How the world's housing market got stupid starts back in the 90's with the invention of the CDO and CLO market... which incentivized banks to pump the collateral value of real-estate so that they could lend as much as possible and as fast as possible as they were selling these loans to investors and other banks... a big pyramid and ponzi pump and dump. They no longer cared if the value of the collateral was "real" or sustainable. And after it all blew up in 2008 world wide, central banks and banking cartels like the Fed Reserve debased the national currencies to be buyers in this CDO/CLO market to keep the banks alive, instead of taking the banks over and readjusting all mortgages to a lower mark to market price; and nations unable to realize it was never a surplus housing problem that caused the problem, in fact housing construction worldwide wasn't keeping pace with population growth, it was an affordability problem that caused people to default on their mortgages.
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