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RE: Who Should We Find Responsible For The Subprime Mortgage Lending Crisis?
If houses weren't pumped so high that an entire generation of the worlds population can barely afford a basic human need - somewhere to live -then maybe it wouldn't be quite as messy.
Well its probably worse now in many areas than it was. After the housing prices crashed in 08-09 companies with cash on hand purchased massive amounts of real estate in major cities. That real estate is now essentially taken off the market because those companies have no intention of ever selling it.
Manipulation happens everywhere. We see it in all assets. First a market maker steps in and begins quietly accumulating. He/she now corners the market because he/she owns the majority of the supply. There's few people who can dictate the prices so he/she gets to sell at whatever price they want.
Its pretty awful, and to me the question isn't on who to blame. Throughout history, we've seen technological advancements and free market capitalism give consumers better and better prices on pretty much everything.
Whilst the price of houses can indefinitely go up, it should be in proportion to the average salary. Clearly this isn't the case.
What's more frightening, is when the wealth (re)distribution happens and the rich continuously get richer through essentially pumps and dumps on various asset classes and then the blame is continued to be put squarely on the poor.