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Comment by dpc_01234 | Hacker News Reader

All world countries are operating on fiat currencies, that are inflated away at similar rates.

"financialization of housing" is basically the same thing as "FED". Absent value retaining money, flooded with worthless paper, people look for anything scarce they can park their savings in, turning a social necessity (housing) into savings account, and give into incentives to make it artificially scarce (like NIMBY). Historically (before fiat money) housing was a poor investment. https://www.lynalden.com/most-investments-are-bad/

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> financialization of housing" is basically the same thing as "FED“

You clearly do not understand what financialisation actually means - it’s creation of derivative financial products based on the underlying assets. Eventually these products become so complex, no one knows what’s happening to the original assets. That’s how we got 2008

And you can have 2008 style collapse even if your currency is based on gold coins.

they're talking about something different I think.

they're saying houses are becoming an financial instrument to keep money safe instead of a place to live.

we currently have 1 trillion dollars of debt interest payments every 100 days.

the only way to pay this is for the Federal reserve to print money which devalues the current currency with inflation.

so houses have become a financial instrument to keep monies safe.

I can't take anyone who says "FED" instead of "Fed" seriously on anything about finance and economics.

The video defines “financialization of housing” as referring to cheap mortgages and low interest rates, and not anything to do with fiat currency. It’s fine to offer your own theory, but trying to claim the video is about your theory when it’s not is disingenuous. That aside, claiming it is down to the use fiat currency doesn’t explain why it’s a new issue, when we’ve been on fiat currency longer than most of us have been alive.

I don't think you understand what the poster was saying.

leaving the gold standard allows the Federal reserve to create any amount of inflation they want which allows the government to loan as much money as they want as the Federal reserve can just print money to pay the debt.

the usa is currently hitting unforeseen levels of interest rates on that debt which means inflation is going to increase in perpetuity.

which means rich people need places to park their money as this is the beginning of massive currency devaluation

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