Daniel Friedman(@DanFriedman81):One thing that worries me a lot is that the economy is basically a Ponzi scheme. Older people's wealth is tied up in their houses. They are depending on ever-rising asset prices that they can borrow against. Younger people would like to buy houses. But policymakers have been pushing up asset prices to shore up the boomers. Now, there is nobody to buy the houses at the prices they are at, and nobody selling wants to lower the prices. When asset prices start to fall, overleveraged homeowners will start defaulting. But if asset prices stay where they are, younger people can't buy homes.

2026.09.06 18:17

One thing that worries me a lot is that the economy is basically a Ponzi scheme. Older people's wealth is tied up in their houses. They are depending on ever-rising asset prices that they can borrow against. Younger people would like to buy houses. But policymakers have been pushing up asset prices to shore up the boomers. Now, there is nobody to buy the houses at the prices they are at, and nobody selling wants to lower the prices. When asset prices start to fall, overleveraged homeowners will start defaulting. But if asset prices stay where they are, younger people can't buy homes.

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