[thrwy_ywrht]

>The FED ruined young peoples ability to afford a home.

House prices have certainly risen substantially in the last few years [1]. But if the FED is to blame, why has the same thing happened in the UK [2], Germany [3] and Australia [4] ?

[1] https://fred.stlouisfed.org/series/QUSR628BIS

[2] https://fred.stlouisfed.org/series/QGBN628BIS

[3] https://fred.stlouisfed.org/series/QDER628BIS

[4] https://fred.stlouisfed.org/series/QAUR628BIS

[lordnacho]

Because interest rates went down in those countries as well? We're only just coming off the lowest rates ever in the UK. The Euro hasn't existed for long but record lows there too. Oz as well.

[arcticbull]

Why hasn't the same thing happened in Japan, which has tripled its money supply since 1990? House prices (and the price of everything else) has remained dead-ass flat. The difference is the have federal zoning rules that allow the supply of houses to meet the demand of houses.

[rcpt]

Japan price to income ratio is bad but that speaks more to horrifically low wages.

They've also been more aggressive about taxing real estate investment (they leaned their lesson in the 80s) and their zoning laws aren't captured by local busybodies.

[adam_arthur]

Japan has a declining population. Residential real estate inevitably declines with this demographic trajectory.

More housing units per person. Also Japan did not have a lot of nimby mentality blocking new housing, to my knowledge

Lower rates offsets the price reduction to a certain extent.

[CountSessine]

Japan has a declining population. Residential real estate inevitably declines with this demographic trajectory.

The Kansai region has an increasing population and real estate prices are still in decline or stable.

Also Japan did not have a lot of nimby mentality blocking new housing, to my knowledge

Yes, they did - prior to 2001 when the national government took zoning authority away from municipalities.

[adam_arthur]

FRED shows housing prices in aggregate rising in Japan

https://fred.stlouisfed.org/series/QJPN628BIS

If a growing region is declining, I would expect building to be outpacing growth, or a cultural trend away from wanting to own (reduction in demand for purchasing despite growing population)

[arcticbull]

All that would mean is its a market where supply >= demand. The weights on the scale aren't as relevant, IMO.

[padobson]

It's also worth mentioning that every developed nation has a heavy interest in the value of the dollar, because of trade with the US, petrodollars, etc.

[01100011]

The USD is the world's reserve currency and loose monetary policy since 2008 is likely spilling over into economies across the globe. If you can get an artificially low rate loan in USD you can convert it to your local currency. It doesn't matter so much what your central bank does.

[ChrisLomont]

Conflating reserve currency with loan backings is like mixing Thursday with vaseline - it makes no sense.

For example, UK has at most $87B of foreign currency reserves, a fraction of which is USD. [1]

UK has 9.2T in privately owned homes [2]. So reserve currency can back at best a tiny, likely sub percent, of all home loan amounts.

And, this is the kicker, the UK does not hold reserve currency to loan to anyone. It's an assert they hold at the national level.

So cost increases there (and other countries listed above) are not the result of US being a reserve currency. Don't make up wild claims.

[1] https://assets.publishing.service.gov.uk/government/uploads/...

[2] https://www.mansionglobal.com/articles/u-k-home-values-have-...

[01100011]

Do lower cost loans in USD allow investors and speculators to make investments in markets outside the US?

Does artificially created demand in the US allow more consumption of commodities which inflates the price of home building in other countries?

Do artificially inflated US asset prices produce a wealth effect in other countries if people in those countries hold those assets?

I'm not sure what UK reserve holdings have to do with my comment but I don't know, I'm just some guy on the internet.

[ChrisLomont]

>I'm not sure what UK reserve holdings have to do

Your first comment started with "The USD is the world's reserve currency".

Do you know what reserve currency means?

[01100011]

Oh right, you want to have one of those useless internet arguments instead of focusing on the spirit of the discussion. Ok then. Well Investopedia says:

> A reserve currency is a large quantity of currency maintained by central banks and other major financial institutions to prepare for investments, transactions, and international debt obligations, or to influence their domestic exchange rate. A large percentage of commodities, such as gold and oil, are priced in the reserve currency, causing other countries to hold this currency to pay for these goods.

So I don't know, maybe I was focusing on how commodities are priced in the USD. Have a great day!

[ChrisLomont]

>Oh right, you want to have one of those useless internet arguments instead of focusing on the spirit of the discussion

When people make stuff up they feel is related, but do not check if it is actually relevant or possible, or even really understand the terms, then double down, it derails the discussion. It's not "in the spirit" of the discussion.

>So I don't know, maybe I was focusing on how commodities are priced in the USD.

Which foreign housing markets price their houses in USD? You replied to a comment about houses in UK, Germany, and Australia, none of which do.

Did you notice not a one of the many reasons a country holds a reserve currency is to make loans for local housing stock be more available? No? Read it again.

Pick a country, like I did the UK. Show the size of their USD holdings relative to their housing stock loans. Tell me again how such absolutely tiny ratios are relevant to the availability of loans. I showed one case where the relative sizes of the numbers makes it absolutely silly to claim their related. But since you made the first claim, and it on face value seems completely nonsense, then you provide some correlation or peer reviewed paper or whatever you think makes availability of loans in the foreign countries the OP mentioned tied to the face that USD is a reserve currency, and not more to simply local or global economic conditions, unrelated to the fact that USD is (but one) of reserve currencies.

I get you're likely Dunning Krueger and know nothing about finance or central banking or how housing markets work. Or you could admit you don't know and didn't know there is a relation or not and you simply threw two terms you knew little about, then when called on it, got upset.

But go ahead, and show me the link you claimed to start this with. Good luck.

[azth]

The reason is simple: the corrupt nature of the global financial system today, which is based on strictly immoral and parasitic practices such as money lending with interest, money printing, gambling (e.g put and call options), selling debt for debt, shorting (selling what you don't own), etc. It's one big casino folks, and it is rigged to benefit the select few at the top.