How Charity Destroys Price Discovery...and Thus Society

[Locutus]

At first you may find this distasteful. "Come on Cappy, how can you go after something like charity." But remember, for anybody who dared to criticize housing or education, they were equally lambasted because "housing should be a right" and "you can't put a price on education."

But need I remind you of the Great Recession and the problems the millennial generation is facing with their un-repayable student loans? And if you think these are/were problems, just wait till the charity bubble bursts. Regardless, the key point to be made about the "charity bubble" is that its origins hail from the exact same origins as the housing and education bubbles. Mispricing.

But the question is "the mispricing of what?"


And the answer is "the mispricing of stupid decisions."

mo

Captain Capitalism: How Charity Destroys Price Discovery...and Thus Society


The Stupidity Bubble

 

[Angstrom]

politicaly correct bubble.

 

[skookumchuck]

I worked three small home businesses and one job when building my first home. I got caught in 1980 with 19-3/4% interest which doubled my expected payment to over 1400 per month, at a time when 2000 per month was a damn good salary. Luckily i was on a large acreage (29) and we were able to live in the basement as i built the upper floor. I kept making those payments even as the rate dropped and 8 years later had halved my mortgage.
Nobody even thought about giving me any freebies, no "housing is a right" BS.

 

[Angstrom]

I worked three small home businesses and one job when building my first home. I got caught in 1980 with 19-3/4% interest which doubled my expected payment to over 1400 per month, at a time when 2000 per month was a damn good salary. Luckily i was on a large acreage (29) and we were able to live in the basement as i built the upper floor. I kept making those payments even as the rate dropped and 8 years later had halved my mortgage.
Nobody even thought about giving me any freebies, no "housing is a right" BS.

That's the difference between you and cliffy. He just gave up at that point and hasen't stopped whining ever since.