Banks create money out of nothing when they give you a mortgage. It's called fractional reserve banking. They're not "lending" you anything... your house becomes the collateral they use to create money from the mortgage contract itself.
This means a large amount of inflation gets funneled directly into the housing market. This skews economic signals and turns housing into a financial asset for the wealthy. The wealthy don't complain, because they are already on the property ladder.
So our entire financial system is fundamentally broken and this brokenness manifests most visibly in the housing market.
This means a large amount of inflation gets funneled directly into the housing market. This skews economic signals and turns housing into a financial asset for the wealthy. The wealthy don't complain, because they are already on the property ladder.
So our entire financial system is fundamentally broken and this brokenness manifests most visibly in the housing market.