Americans still think they can make money flipping houses

Post by qeternity » Sun, Jul 10, 2022, 8:40 AM UTC

mprime1 wrote: post #190

qeternity wrote: post #185

Earlier quoted context omitted.

> Banks would then lend that money out to earn interest. We then basically decided this was too conservative a strategy so we have fractional reserves, meaning if you have $100,000 in deposits you might be able to lend out $1 million. This is entirely wrong. Fractional reserve banking is what allows lending. How do you envision a bank with $100k lends out $1m? What fractional reserves mean is the opposite: if you hav…

Is it possible both things are true? From https://en.m.wikipedia.org/wiki/Fractional-reserve_banking Fractional-reserve banking is the system of banking operating in almost all countries worldwide,[1][2] under which banks may hold liquid assets representing only a portion of the deposits that they are liable to pay.[3] These liquid assets, known as reserves, may include cash in the bank or balances in the bank's acco…

Post by Schiendelman » Mon, Jul 11, 2022, 3:09 PM UTC

xboxnolifes wrote: post #186

Schiendelman wrote: post #56

Earlier quoted context omitted.

Renters are so much less likely to be voters that this has little impact. In Seattle, for instance, municipal elections are on odd-numbered years. As a result, get out the vote operations that tend to increase renter turnout during presidential elections don’t have much impact on local elections. We had a vote in the 90s that reduced housing supply considerably, “Citizens Alternative Plan.” It was a February special…

> Renters are so much less likely to be voters that this has little impact. This, however, does not mean it is causal. Just because it's the case at the moment does not mean it would be the case if homeownership dropped 50%.