5 sats \ 3 replies \ @TomK 6 Oct 2023 \ parent \ on: How does Bitcoin help fix the housing and rental markets? 🤔😮💨 bitcoin
I think interest rates will be rising sharply this decade. Markets try to get rid of over-indebtedness (is this actually a word??). People will learn that real estate prices are falling (deflating) in most regions and that there is a risk taking up hundreds of thousands of debt privately.
Interesting.
I mean, the whole system is managed by making sure people and businesses do NOT have to ever fully repay their debts. If they did - the whole thing blows up. So assuming the interest rates will stay and go higher - although it ought to reset all the bad debt - it would tank and blow up the economy. And the policy makers won't do this. They'll likely lower the rates so people can prop up the economy by taking a bit more debt and keeping the circus going.
Do markets actually try to rid themselves of bad debt? Maybe a more natural one... But this economic fiat system is so artificial.
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The state, with its cb, of course can manipulate the price of money over a certain time - until the bond market is saturated which seems to be very close if not overshoot already.
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Not to mention the government interventions coming. They'll do anything to keep it going as long as it can.
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