If the Economy Is So Strong, Why Are Consumer Stocks Tanking?

Post by userinanother » Wed, Oct 18, 2023, 8:14 PM UTC

PH95VuimJjqBqy wrote: post #111

userinanother wrote: post #110

Earlier quoted context omitted.

That’s a big caveat. Inflation is 4-5% officially, bonds are 7-8 ish maybe more for real estate investment. But real estate prices are falling or flat. If you suddenly need to earn even 6% off a house you need to rent it for quite a bit. It might make sense still at the low end (under 250k) but a 500k property needs to rent out for 2500a month to break even. And that’s not including taxes, maintenance, vacancy, admin…

you want what you're saying to be true because you want reality to agree that you're going to make it unprofitable to invest in real estate. good luck with that.

Post by CapstanRoller » Thu, Oct 19, 2023, 7:00 AM UTC

zelon88 wrote: post #58

zeroCalories wrote: post #53

Earlier quoted context omitted.

This fundamentally misses the problem. Investors are only able to speculate because there is a shortage of housing. They are betting that in the future even more people will want that housing, and they are probably right. The only real solution is to crash the housing market by building more houses in places that people want them. Banning speculation won't solve the problem, and it might actually make the problem wor…

I would argue we need to put limitations on what entities can purchase residential property. There is no reason a corp needs to own a 2 bedroom house. It is manipulating a critical market and destabilizing everything. Push them out of the market. They should have have no skin in this game. You want to increase the supply. I want to tank the demand. Your method won't work because if regular people could afford to comp…