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View Diary: It's the class warfare, stupid! (139 comments)

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  •  Very true: While the real value of a house (0+ / 0-)

    will change over time, it is actually fairly constant.  It is the value of a place for people to live.

    Certainly there are circumstances where the real value of a house will change dramatically (ie: a one industry town losing its factory) and sustained boom times in a certain local can lead to a shortage of housing (and therefore increased real value) - but these are local aberrations.  In the economy as a whole, the value of housing should be one of the most stable things there is - as stable as population growth.

    This is not what happened with the nation-wide housing bubble - that was caused by a failure of the financial system due to its need to perpetually produce returns on capital which are several times larger than the rate of economic growth.

    All that money making money - it's got to come from somewhere - even it's entirely inflationary - as long as an ever larger share is going to provide returns on capital.

    We may have democracy, or we may have wealth concentrated in the hands of a few, but we can't have both. - Former Supreme Court Justice Louis Brandeis

    by RageKage on Tue Jan 03, 2012 at 10:36:37 AM PST

    [ Parent ]

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