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0 pointslumost4y ago0 comments

There doesn’t need to be explicit coordination if incentives are set up as they are.

The fed has a dual mandate to provide full employment and economic stability. If the Fed’s policy caused mass bankruptcies.. then the Fed would be failing part of its mandate.

IMO the scary part of this for the fed is housing. Housing is appreciating to substantial multiples of incomes due to low interest rates and restricted supply. If the FED raised rates and crushed the housing market the majority of Americans will feel the pain.

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imtringued4y ago

The problem with housing is that people don't want to pay land value taxes. They actually love buying a house to live in, speculate with that house and then never actually sell it because they realize they don't want to speculate on housing and just live in it. So you have this hybrid speculator/owner occupation thing going on where the speculator is draining money from everyone else but not actually benefiting from it. That person will then argue for lower property taxes because he cannot afford them which will make it easier for real speculators to make money off of real estate.

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0 pointslumost4y ago0 comments

There doesn’t need to be explicit coordination if incentives are set up as they are.

The fed has a dual mandate to provide full employment and economic stability. If the Fed’s policy caused mass bankruptcies.. then the Fed would be failing part of its mandate.

0 comments

imtringued4y ago

j / k navigate · click thread line to collapse