Re:Ask HN: when will property prices go back up?
by noonespecial on Monday March 23, 2009 @05:52AM
(#528292)
Prices were bid up to artificially high levels by the pretend money that banks were lending. (Pretend because there was no reasonable way it could be paid back and nearly anyone could get it).
Prices probably won't "go back up" the way anyone hopes. The prices were fake. The crisis will end when the prices either 1) Fall to their "real" market value, or 2) The government pulls a fast one and inflates the currency until the shrinking value of the dollar meets the prices people have come to expect at that real value. (And everything on the dollar menu at McD's costs $2.50)
I think its fairly obvious which choice has been made by the suit-monkeys.
Prices probably won't "go back up" the way anyone hopes. The prices were fake. The crisis will end when the prices either 1) Fall to their "real" market value, or 2) The government pulls a fast one and inflates the currency until the shrinking value of the dollar meets the prices people have come to expect at that real value. (And everything on the dollar menu at McD's costs $2.50)
I think its fairly obvious which choice has been made by the suit-monkeys.