• UnderpantsWeevil@lemmy.world
      link
      fedilink
      arrow-up
      17
      arrow-down
      2
      ·
      edit-2
      7 months ago
      • Carter, who was President for 4 Years Screwed up the economy by liberalizing the housing market

      • Nixon, Ford, Reagan, and Bush Sr, who ran the White House for 20 years had nothing to do with it

      Please nobody ask what inflation was like between 1968 and 1992

      • aidan@lemmy.world
        link
        fedilink
        arrow-up
        2
        arrow-down
        1
        ·
        7 months ago

        Yeah, it’s probably better to go back to a lot of FDRs policies.

        Or the bipartisan effort to keep house prices by any means necessary. Such as by giving everyone who a fairly low interest home loan , which directly led to 2008.

        • UnderpantsWeevil@lemmy.world
          link
          fedilink
          arrow-up
          1
          arrow-down
          3
          ·
          7 months ago

          by giving everyone who a fairly low interest home loan , which directly led to 2008.

          You think 2008 was the result of low interest rates?

          • aidan@lemmy.world
            link
            fedilink
            arrow-up
            2
            arrow-down
            1
            ·
            7 months ago

            No, guaranteed loans. If everyone can get a loan interest loan, it doesn’t really matter to them if a house costs $200,000 or $400,000 spread out across 30 years. So home prices just continue to inflate. The loan interest rates and guaranteed loans are the reason prices got so high in the first place, the collapse of this scheme by flying too close to the sun with repealing Glass-Steagal is what lit the fuse in 2008. But they’ve got their plan back on track now.

            • UnderpantsWeevil@lemmy.world
              link
              fedilink
              arrow-up
              1
              arrow-down
              3
              ·
              7 months ago

              No, guaranteed loans.

              A necessity in a society whose economy operates via credit expansion.

              it doesn’t really matter to them if a house costs $200,000 or $400,000 spread out across 30 years

              If you’ve ever had to pay a mortgage note, you’ll discover that it matters substantively. The real benefit of the 30 year note isn’t the scale but the fixed interest rate. Once you find a house you can afford, rising rates of pay relative to a fixed rate of interest means the real house note costs decrease over time.

              The loan interest rates and guaranteed loans are the reason prices got so high in the first place

              Prices for housing vary substantively by region and by density. Housing prices in neighborhoods with low rates of development continued to be cheap well into the early 2000s. Housing prices in the suburbs and exurbs - particularly for new builds - are consistently cheaper than in the urban centers where real estate is scarce.

              If you check out the Austin, TX real estate market during the Carter to Clinton period, housing was incredibly cheap and abundant. It wasn’t until the construction boom in the mid-00s that prices began to climb, and the rate of climb outpaced most of the continental US well into the Trump/Biden era. That had nothing to do with “guaranteed loans” under Carter and everything to do with Austin developers quickly maxing out available real estate development area easily accessible from the freeways. Same thing happened in DC and Virginia, after Amazon moved in. Housing speculation boomed, completely apart from individual credit.

              You can see the reverse in Michigan, Ohio, and Illinois, where the collapse of the auto industry made real estate incredibly cheap. Also in Florida, abet on a much tighter timeline.

              And the major driver behind all of these price fluctuations has been private equity investment in residential real estate

              This has nothing to do with Carter and everything to do with three men by the names Gramm, Leech, and Biley.