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0 pointsandrewmcwatters4y ago0 comments

I agree. Politicians have weak incentive to push back I assume?

If you do, you put average people at REITs out of work. This isn't a terrible thing if you ask me, because not much of it is real estate specific. REIT HR people can find work at other companies, developers and salespeople, too. But it's not a good look, I suppose?

Real estate is a real problem that no one seems to want to touch. "The rent is too d*mn high!"

0 comments

toomuchtodo4y ago

A fun question we kick around and model in a financial forum I participate in is, “How much insolvency occurs economy wide for every 100 basis points (1%) the Fed increases their interest rate target?”

If interest rates go up, real estate and equities prices come down, and US gov borrowing costs increase. Borrowing costs go up for zombie firms and they fail. How much appetite is there for any of that? The same as long term central back interest rate policy: zero.

Der_Einzige4y ago

No, if interest rates go up, the acceleration of real estate and equities prices will slow. There are too many real factors which are causing the acceleration of housing prices for interest rates hikes to totally cancel it out.

reader_mode4y ago

Interest rate hike would probably cascade to a recession blowing up realestate in the process

tryptophan4y ago

REITs are not the problem. Land speculation is the problem. Worst part is that the gov promotes this, and voters eat that shit up as well("Your mortgage is an investment").

https://en.wikipedia.org/wiki/Land_value_tax is the solution.

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