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by _dps
2105 days ago
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The professor's quip is cute but myopic. The pieces of paper are claims on future production so the true cost is seen later. The end result was - American Boomers got cars
- Japanese boomers got USD
- Japanese investors then spent much of the USD on things like US real estate investment vehicles (hardly Japan only, any country that collected large amounts of USD due to trade deficit)
- American Boomers in prime markets saw tremendous returns on real estate
- and American millennials 30 years later got priced out of houses
Yes I know foreign investment is not the only cause of rapid price growth in real estate. But it is a significant contributor. |
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