Don’t know what that other commenter is talking about. This video made easy sense. “Financialization of housing” is just describing the ways housing has become more of an investment to make a profit rather than just being a place people build to live in. That has advantages and drawbacks depending on your point of view. But it’s partly at odds with wanting more affordable housing because, obviously if people are investing in homes to sell them for the highest profit that’s also raising prices for the people looking for affordable housing.
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless." - Thomas Jefferson
"The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented." -Sir Josiah Stamp, former Bank president
Ads like "sell for more than the house next door" they have got to be kidding. If your grocery store said "We sell food for more than the store next door" they would want to be out of business. Even HUD and Habitat for Humanity are playing with this housing-as-investment nonsense while people are becoming homeless because of it. Thanks for this report.
Yesterday's rich - biggest house on the block. Today's rich - leveraging their starter home to beat out a slightly younger couple on a second purchase and rent it to them. All while humble-bragging about making family their priority and living their best life.
This the closest anyone has come to an accurate explanation to what is actually going on. Money is being made from the manipulation of money rather than by the production of real assets. Profit is being made by extraction of *land rent.* Asset prices are being bid ever higher and profit is made from the difference between the buying and selling price (arbitrage) even though the intrinsic value of the asset has not materially changed. The higher selling price is made possible (affordable?) by the ready availability of 30 year mortgages. Mortgages are now just a different form of rent. This is really ridiculous when you think about it.
Don’t know what that other commenter is talking about. This video made easy sense.
“Financialization of housing” is just describing the ways housing has become more of an investment to make a profit rather than just being a place people build to live in.
That has advantages and drawbacks depending on your point of view. But it’s partly at odds with wanting more affordable housing because, obviously if people are investing in homes to sell them for the highest profit that’s also raising prices for the people looking for affordable housing.
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless." - Thomas Jefferson
"The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented."
-Sir Josiah Stamp, former Bank president
Ads like "sell for more than the house next door" they have got to be kidding. If your grocery store said "We sell food for more than the store next door" they would want to be out of business.
Even HUD and Habitat for Humanity are playing with this housing-as-investment nonsense while people are becoming homeless because of it. Thanks for this report.
Yesterday's rich - biggest house on the block. Today's rich - leveraging their starter home to beat out a slightly younger couple on a second purchase and rent it to them. All while humble-bragging about making family their priority and living their best life.
It's called the rentier class, it's pure greed.
This the closest anyone has come to an accurate explanation to what is actually going on.
Money is being made from the manipulation of money rather than by the production of real assets. Profit is being made by extraction of *land rent.* Asset prices are being bid ever higher and profit is made from the difference between the buying and selling price (arbitrage) even though the intrinsic value of the asset has not materially changed. The higher selling price is made possible (affordable?) by the ready availability of 30 year mortgages. Mortgages are now just a different form of rent.
This is really ridiculous when you think about it.
I hope the series is better at explaining this because this video is not well done and I have little better understanding than before I watched it.