When Shelter Becomes a Speculative Asset, Society Unravels
Does anyone really believe that renouncing massive, sustained stimulus of speculation in housing would leave housing valuations unchanged because valuations are solely the result of "shortages"?
Let's begin by stipulating that speculation (i.e. gambling) is part of human nature. The role of regulations and policy is to limit the damage that gambling inevitably inflicts when "sure things" cliff-dive into losses.
In other words, where the speculative frenzy and money flows matters. When the South Sea Bubble expanded circa 1713-1720, this flood tid…
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