Investors double down on stocks, pushing margin debt to record

Re:Investors double down on stocks, pushing margin debt to r... by klyrs on Sunday December 27, 2020 @01:14PM (#25552964)

Accounting for inflation, there is a wealth transfer. As the rich get richer, supply-constrained assets like housing become more expensive. Folks whose income doesn't scale similarly lose purchasing power, and their quality of life drops as a higher portion of their income goes to rents.

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Re:Investors double down on stocks, pushing margin debt to r... by cactus2093 on Sunday December 27, 2020 @02:47PM (#25553699)

Maybe you’re right, I’m generally wondering if there is a wealth transfer, but so far it seems much more complicated than any simple analysis or example I’ve seen.

The example you chose is a particularly bad one though because rents are down a lot this year in high cost of living areas.

Also, just in general there’s no reason housing should be a “supply constrained resource” by definition like you seem to be taking as a basic fact. Take a look at Tokyo for example.

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Re:Investors double down on stocks, pushing margin debt to r... by almost_usual on Sunday December 27, 2020 @01:22PM (#25553037)

More people will stop paying rent.

Homeowners will not be able to evict them during / post Covid ( especially in the Bay Area ).

I think we’ll see squatting in a home until it becomes yours more common as well.

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