Comment on Housing prices
ZombieCyborgFromOuterSpace@piefed.ca 1 month ago
What broke is they allowed housing to be a commodity allowing speculators to bid on.
Comment on Housing prices
ZombieCyborgFromOuterSpace@piefed.ca 1 month ago
What broke is they allowed housing to be a commodity allowing speculators to bid on.
chiliedogg@lemmy.world 1 month ago
Yep. With the repeal of Glass-Steagal, the commercial banks used for things like mortgages, checking accounts, and car loans were able to merge with investment banks. The Act was out into place in 1933 because having retail banks mixed with investment banks was why Black Tuesday lead to the Great Depression.
That allowed houses and mortgages to be combined into investment packages for the speculators, and lead to prices skyrocketing.
It’s what caused the 2008 crash, and in all the aftermath of that, nothing was actually done to fix the issue. The fix was simple - re-divorce them and reinstate Glass Steagall.