tag:blogger.com,1999:blog-5931453687256232017.post7406221708913399961..comments2024-03-19T11:22:15.250-04:00Comments on TANSTAAFL CANADA!: The Coming Recession: Don't Blame Real Estate!Unknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5931453687256232017.post-10262566150177602042011-03-30T20:14:46.400-04:002011-03-30T20:14:46.400-04:00Who do I honestly believe are the people that set ...Who do I honestly believe are the people that set real estate prices? I already explained in my post. These artificially low interest rates send signals throughout the economy that cause these malinvestments and create bubbles. Everybody is still acting according to supply and demand, everybody is still working towards profit. The problem is the path is unsustainable because of monetary intervention thanks to governments/central banks.<br /><br />As far as I can see real estate agents/developers are making money by voluntary means. I have no beef with them.<br /><br />The ones that use government to their advantage are dishonest, but this is more of a problem with government than with these people. The only reason they lobby for these benefits is because government is a coercive monopoly. Who wouldn't want to do business with an institution that demands payment by force?<br /><br />As long as there are real estate agents and developers in business, the consumer will have already spoken. They are productive contributors to our economy. They are not cockroaches, but human beings just like you and me.<br /><br />The problem is the State, and it's coercive monopoly on money and interest rates (as well as many other things it controls).<br /><br />I suggest you read up on the Austrian business cycle theory for more information... Also, if the market is not run by supply and demand, then what is it run by? I'm curious to know.Caleb983https://www.blogger.com/profile/10485176355086983772noreply@blogger.comtag:blogger.com,1999:blog-5931453687256232017.post-23153114443674295102011-03-30T07:55:53.544-04:002011-03-30T07:55:53.544-04:00Who do you honestly believe are the people who set...Who do you honestly believe are the people who set the price of real estate in Canada.<br />The current situation is self evident that the law of "Supply and Demand" does not rule the market.<br />We have far too many people in the marketing of Real Estate that artificially decide the pricing of housing in any given market.<br />They are protected by a very large lobby in the business that they support. (with no moral standards).<br />Real Estate Agents / Developers in my community have flooded the market with housing developments and hundreds of condo's that they can't sell. By that I mean they influence the local government and political folk, telling them that it is a good thing. Now, in my community they are perpetrating a lie that there is a strong market. Condo's in reality are selling for 100k below what the realtor's want them to sell for.<br />The problem is that these unproductive, non contributers to economic output are like cockroaches in that they hide in the dark and come out when the light of taking advantage of the plight of people presents itself.<br />I think that there is a special place in hell for these folks.<br />They have no place in a society that subscribes to the individual doing something productive to the economy.Anonymousnoreply@blogger.com