What housing bubble are you referring to?
Comment on Microsoft seemingly just revealed that OpenAI lost $11.5B last quarter
tburkhol@lemmy.world 15 hours agoIn contrast to the housing bubble, where a lot of the value was in overpriced houses sold to individuals, this overpricing is almost entirely in tech stocks, and tech stocks are almost entirely owned by by the wealthiest 10%, even 1%. The tech billionaires have limited ability to divest themselves of their own overpriced companies and absolutely will lose money.
None of them are going bankrupt, they’ll all be just fine when the market recovers in a few years, because that’s the nature of capitalism. A bunch of peons, who convinced themselves that the bubble-value of their 401k meant it was safe to retire, will suffer, will have to go back to work - if you’re not an oligarch, losing money is painful.
artyom@piefed.social 14 hours ago
pdxfed@lemmy.world 11 hours ago
artyom@piefed.social 10 hours ago
That wasn’t a housing bubble, and it had nothing to do with pricing. It had to do with lenders selling mortgages to anyone who could fog a glass, knowing full well they wouldn’t be able to repay them.
pdxfed@lemmy.world 6 hours ago
The bubble was accelerated by people assuming prices would always rise, often their own greed and flipping or becoming landlords, and this was only possible due to the financial engineering that made lending to these folks posivle, but all of that droce the value of the underlying assets down significantly.
You claim there wasn’t a bubble…look at home price values in the sunbelt in 05 vs 2009.
TF are you talking about there wasn’t a bubble
WhyJiffie@sh.itjust.works 13 hours ago
was?
chuckleslord@lemmy.world 10 hours ago
34% of single-family housing are now rented out. We’re not building enough housing, a fact that hasn’t changed since the housing bubble collapsed. So, a lack of investment in new property, large funds putting money into existing properties instead, and less risky homeowners overall means we don’t really have a housing bubble. We have a supply shortage, leading to high prices. The correction for that isn’t a crash.
WhyJiffie@sh.itjust.works 7 hours ago
did it? it does not seem so. where I live to buy a house in good condition people need to take out loans that the bank may not even allow, but if it does they’ll pay it for decades. even empty plots are still very expensive. more and more people live in a rented place even though they don’t want to move, because their house is taken away.