/biz/ - Business & Finance

>>9935439
That definitely has a lot to do with it. Inflation (higher prices) hits a few areas more than others. Especially when you can borrow money to buy something.

Technology and even food aren't hit as much. Cars, a little, because you can borrow some money for it.
Rent, school and healthcare are hit the hardest. That's where the big loans come in.

Rent (real estate) is inflated, since a lot of huge loans (mortgages) are offered there (even with no money down).
-When you can't pay (default/go bankrupt), the bank gets the house back (foreclosure).
-In the case where everyone can't pay (like the '08 crash), and the banks get a way cheaper house (underwater), the gov comes in and covers all the loses (merrill/bofa/aig bailout).

School (college) is inflated, because a lot of huge loans (mainly federal guaranteed) are handed out (no money down/no income verification).
-When you can't pay, the gov seizes your paycheck (garnishes wages) to pay it off. You can't go bankrupt against the fed like you can with private banks. So they garnish your wages until you die, to eventually get their money back.

Healthcare is inflated because you need it, and have no choice but to deal with the massive bill you get.
-When you can't pay, you get your assets seized via bankruptcy to cover the bill.

Stocks are also inflated, since a lot of margin loans are offered there