Mastodawn

@mojo Indeed; I wrote about this 14 years ago:

"Which means that the market price of #housing will drop — as it naturally must — to the cost of production. Which means that people who bought houses on borrowed money at artificially inflated prices won't be able to sell them at artificially inflated prices. Which means they're bankrupt. Which means the banks are bankrupt. Which means the economy, and the political system as we know it, must collapse."

#Kleptocracy

https://www.journeyman.cc/blog/posts-output/2012-12-02-on-the-cost-of-housing/

On the cost of housing

I've blogged a fair bit about this house as structure, and, by implication at least, as therapy. Now that it is finished, it's time to talk about it as politics. Housing, in this world, is intensely political. We're currently going through an extremely severe period of political turbulence caused mainly by unsustainable housing debt, both in the US and in Europe — in the UK, in Eire, Spain, Greece... Houses, we hear, are expensive. So expensive that ordinary people can afford them only by taking out enormous loans, which consume the overwhelming majority of their disposable incomes for most of their adult lives. Just yesterday, the Westminster government announced a scheme to allow people to borrow up to 95% of a quarter of a million pound price, in order to 'stimulate the building industry' and 'help people into the housing market'.And it seems to be true; it seems houses do cost that much. Of the houses currently for sale in my home village, only one, a tiny upper flat, is offered at an asking price below a quarter of a million...

The Fool on the Hill

Calls for cheaper homes are 'nonsense' while banking system underpinned by housing

On the cost of housing