The money supply grows about 8% on average, if you believe that money can flow from an ever more abundant asset into an ever scarcer asset then its really just two pieces of a puzzle.
Housing was likely no different before 2008, a lack of supply relative to cheap debt kept prices elevated, it wasnt until housing completions were too high that it began to fail. Before then it was simply a liquidity sponge being used to create a windfall to ultimately increase aggregate demand, which is how our monetary system functions.
2 Comments
LibreHans@lemmy.world · 2 pts · 1y
hasn't touched.. yet
toastmeister@lemmy.ca · 1 pts · 1y
The money supply grows about 8% on average, if you believe that money can flow from an ever more abundant asset into an ever scarcer asset then its really just two pieces of a puzzle.
Housing was likely no different before 2008, a lack of supply relative to cheap debt kept prices elevated, it wasnt until housing completions were too high that it began to fail. Before then it was simply a liquidity sponge being used to create a windfall to ultimately increase aggregate demand, which is how our monetary system functions.