/biz/ - Business & Finance

>>19913343

>The cause of 2008 crisis was not the Real estate inflated it was the loan sistem in a bubble they gave loan without garantiees

This is false. You can see it is by looking at house-prices adjusted for inflation. Subprime was simply the pin that pricked the bubble, a bubble which itself was created by artificially low interest-rates.

>Real estate is never inflated

Again, false. We know when real-estate is inflated, because we can examine it against earnings. House prices are 8x earnings now, when they should be 2.5x earnings, the historic average.

>real estate = gold (better than gold cause at least they have a basic utility like food... gold is a yellow fancy metal)

Upon the whole, gold is far more valuable than real estate. Most of the price in real estate is either 1) Because of the asset-bubble created by the Fed, 2) For ornamental purposes. A house has true value only insofar as it shelters you; anything beyond that is a luxury. Whereas gold is absolutely necessary for civilization, since it moves us past the barter-system. It is the only thing which serves both as a stable store of labour, and as a medium of exchange. You could have civilization with the most boring, workmanlike houses; but you could not have it without money, and gold is money.