>>214018881
>>214018962
the mechanism is that if the "price to rent" ratio goes too high renting becomes attractive, if it goes too low renting becomes unattractive
but many poor people are disproportionately exposed to renting because they may not qualify for a loan or because even if they did it would be very hard on their finances
a very strong mechanism that helps out poor people in the long term is arbitrage
so if the ratio goes low (buying is easy, renting is expensive), a lot of investors who have capital will naturally try to buy houses to rent them out
this is seeing as something "reprehensible" by midwits, but they are massively speeding up the natural process of increasing buy valuation and reducing rent valuation until the equilibrium is inevitably reached
by ruling a 4 year hold on newly bought properties before renting them, the short term mechanism of restoring the price:rent ratio into a balanced state is artificially destroyed
now the only way to restore balance is to either wait for consumers to do it (extremely slow process) or for investors to wait out the 4 year period, which may not even be possible because the opportunity cost of not doing anything with their investment for 4 years may eat away on their profit margins and eliminate all incentive for them to even bother
>>214019904
there are always conspiracy theories of why retarded policies fail
for example in venezuela it wasn't the mass printing of money that caused problems, it was foreign exchange speculation and good hoarders acting as saboteurs
