Re:You Can Thank Private Equity for That Enormous Doctor's Bill
by the_real_cher on Thursday May 30, 2024 @06:11PM
(#40529285)
I mean the demand for anything is 350 million people.
But most things people have a price ceiling they're willing to pay.
Health care there is no price people won't pay for their lives, so the demand ceiling is essentially the entire net worth of the entire population
Same with housing. Demand is increasing faster than supply hence price increases.
Price increases make housing a great financial instrument due to ease of getting mortgage loans.
Also why we need to have a sane immigration strategy. Can’t bring in too many people too fast (like Canada)
Private equity is playing cards on the arbitrage that any asset that increases in demand much faster than supply, and can be loan leveraged is a great investment.