Tuesday, June 26, 2012


And notice:

The only Economy that is doing well, namely Germany, never had this kind of Housing Bubble, actually it should be called HOME PRICES BUBBLE, since more than anything else, it is the constant and continuous hiking up of Home Prices, everyone trying to get a home and buy one, so that they are also "Getting Theirs", their "Imaginary Wealth", like a panic, like an imaginary Resource Scarcity myth, homes are running out, you will be left in the streets and such. And notice that this Home Prices Bubble occurs in static economies that are insecure (Spain, Italy, Greece, etc.), where a majority of the population are home owners (freezing all of their wealth and savings in buildings fooling themselves that the buildings will always have a future wealth), Germany has only 50 % home owners and 50 % renters, and in fact the renting part is what makes an economy "flexible" and such, let's hope that Germany too doesn't decide to have their own Home Prices Bubble.

And China is now constructing entire cities on this mythology of High Home Prices meaning that they think they are All getting Rich, etc. They are building like crazy, hiking up prices, and have millions of empty homes. Good Luck With That, China Also Is TOO BIG TO FAIL...

The moral flaw is that Increasing Housing Prices is money being used as a weapon against the poorer segments of society: the richer (or those having more money) hike up home prices in cities and use money as a weapon to beat up the poor in this manner.

The logical flaw is that of not recognizing that the Economy is a Process, nothing can be fixed forever, everything can be defaulted upon, the value of anything can always change according to how the forces play out and such. By hiking up home prices, people think they can establish fixed wealth in the future, when this is not the case, the Economy is a constant Process, ever changing, home prices are not a given and such. You can't freeze wealth in homes and any other thing...


No comments:

Post a Comment