Comment by littlestymaar

> Regardless you made a specific statement - if supply/demand worked, price of the houses in Detroit would have gone to zero. And, sure enough, it has in fact gone to near zero

It hasn't. It remained steady at 30% consumer spending.

“Why would consumers spend 30% of their income in something that is available for free on the market?” is the paradox you been avoiding all along.

The answer is simple, these “free houses” never actually went on the market because humans aren't rational and they think a house's value is at least roughly equal to the price they paid for it, which means they will refuse to sell for less, no matter if they lose money in the process. Ask any real estate agent.

Supply and demand almost never work for assets unless there's a significant liquidity pressure.

I'm not going to respond to anything else because you will again take that as an opportunity to escape the paradox. (And because it is much more entertaining than attempting to explain why allowing corporations to poison the neighborhood isn't a good idea)