Grasshopper
Senior Jockey
- Joined
- Nov 14, 2006
- Messages
- 16,050
If that's your argument, Art, why just shackle the housing market?
Why not clothing, or fuel, or food Markets too? Why manufacture a cap on the housing market alone, when you could shoot-for-the-moon and a zero-inflation nirvana? A "Never mind the quality, feel the width" paradise?
I'm being glib, of course, but I don't see why the housing-industry (and all the related markets that entails) should be penalised in this manner.
Remove incentive, those of an enterprising nature will simply vote with their wallets, and seek to do something more productive/rewarding - with any gap in Housing supply created by this flight of enterprise, merely making existing properties carry more material value - which would rather defeat your intended purpose.
Prior to 2008, the ready availability of undue credit facilitated a very particular housing-boom. These days, you have to provide collateral before they will even look at your mortgage application. This is further evidence (imo) of a self-correcting market - one where means-to-repay plays a much greater part now, than it has at any point in the last 20 years.
These factors suggest to me that regulation would be both unnccessary and retrograde.
Why not clothing, or fuel, or food Markets too? Why manufacture a cap on the housing market alone, when you could shoot-for-the-moon and a zero-inflation nirvana? A "Never mind the quality, feel the width" paradise?
I'm being glib, of course, but I don't see why the housing-industry (and all the related markets that entails) should be penalised in this manner.
Remove incentive, those of an enterprising nature will simply vote with their wallets, and seek to do something more productive/rewarding - with any gap in Housing supply created by this flight of enterprise, merely making existing properties carry more material value - which would rather defeat your intended purpose.
Prior to 2008, the ready availability of undue credit facilitated a very particular housing-boom. These days, you have to provide collateral before they will even look at your mortgage application. This is further evidence (imo) of a self-correcting market - one where means-to-repay plays a much greater part now, than it has at any point in the last 20 years.
These factors suggest to me that regulation would be both unnccessary and retrograde.
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