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A comment on Why Rent Is So High and Pay So Low. Parent comment

Re:Why Rent Is So High and Pay So Low by narrator on Friday August 07, 2015 @05:45PM (#10025195)
The reason asset prices rise first in a fed led recovery is because new money enters the system through bank loans. Naturally, banks want to lend against hard assets, so the first thing that new money buys is property, stocks and other income producing assets.
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Re:Why Rent Is So High and Pay So Low by natrius on Friday August 07, 2015 @05:50PM (#10025222)
This time is different. The new money enters the system via central bank asset purchases, which lower the returns on those assets. These purchases push investors into asset classes with higher returns, raising the prices of all assets as a result.
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Re:Why Rent Is So High and Pay So Low by maxerickson on Friday August 07, 2015 @06:45PM (#10025452)
An additional buyer shouldn't have the effect of lowering the rate of return on an asset.
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Re:Why Rent Is So High and Pay So Low by natrius on Friday August 07, 2015 @07:41PM (#10025671)
This ain't any old additional buyer. This buyer prints its own money.

http://www.economist.com/blogs/economist-explains/2015/03/ec...

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Re:Why Rent Is So High and Pay So Low by merpnderp on Friday August 07, 2015 @07:11PM (#10025539)
More money chasing the same asset will lower its rate of return.
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Re:Why Rent Is So High and Pay So Low by danieltillett on Friday August 07, 2015 @05:52PM (#10025236)
This explains the how, but not the why. I have found in life the best way to work out why something happens is to follow the money.
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