Curious why housing prices ran up so much? This is why...

in #bitcoin3 years ago

You are being paid to take out a large aggressive mortgage

Big players have been getting a smoking deal in the mortgage market lately...

In the current inflationary environment you are being paid to take out a loan.

We have inflation over 5% and variable mortgages that are charging 1.7%...

That is a rate of return of -3.3% for the lender!

That is a positive 3.3% for the borrower!

Check it out:

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(Source: https://twitter.com/PierrePoilievre/status/1482770027061428227/photo/1)

In a world where interest rates are artificially suppressed, it makes sense to borrow money and that's exactly what the big boys have been doing.

Interest rates have to go up by roughly 5% or inflation has to drop by a similar amount before we start seeing this type of investment no longer make sense.

Bitcoin is another option.

The problem for anyone seeing this now is that the trend is likely to reverse starting about now...

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Upvoted! Thank you for supporting witness @jswit.
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interesting

Thank you for informing us of this asset class; it is very important to be informed!

Gotta love credit...right up to the point you can't pay the debt service payments :)

As of the graph, its too following the BTC trend