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by hangonhn
3013 days ago
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It doesn't hurt current home owners as long as they are not over leveraged. It doesn't necessarily help people without houses either. When there is a recession, credit could dry up. Most people in the US can't afford to buy without a mortgage. The solution to a housing crisis isn't a recession; it's more housing and better transportation. A recession hurts everyone and often hurts the poor harder than it hurts the wealthy. |
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More housing isn’t the solution. Many House bubbles had ample housing for people to live in, but not enough for speculation.
Building more houses kicks the bucket down the road as it accumulates more than necessary housing. When a recession hits, and asset bubbles are deflated, speculation goes to zero, and you’re left with an over supply, an indebted society, and the country may lose generations of productivity (what actually happened in Japan in 1990).