Jeff Sargent of ONB and Darryl Baskin discuss on the Future of Real Estate TV show the Sub Prime Mortgage problem and how it affects the housing market.
This obscures the underlying game being played since the first settlers arrived on these shores, i.e. land speculation. Houses do not go up in value especially when their supply can be increased. It is land value that has been speculatively bid up beyond its "real" value and it is land value that is disappearing when people can no longer afford to pay tons more for the same little piece of land. Speculation in things like land the supply of which cannot be increased is a criminal enterprise.
This obscures the underlying game being played since the first settlers arrived on these shores, i.e. land speculation. Houses do not go up in value especially when their supply can be increased. It is land value that has been speculatively bid up beyond its "real" value and it is land value that is disappearing when people can no longer afford to pay tons more for the same little piece of land. Speculation in things like land the supply of which cannot be increased is a criminal enterprise.
ourearthhome 3 years ago