Comment by anon291
1 hour ago
Taxation would only worsen the bubble as people are left unable to pay.
Again the tax rate sets a minimum return. These high returns encourage too much risk.
Collateralizing other assets is the standard way in which capital grows. I don't see how equities and any different than homes.
There is no 'circular' borrowing other than the normal creation of money through lending
2008 was literally people getting mortgages on unrealized gains, and then getting more loans. Even if the market wouldn't support the sale, they borrow against it and then get another load and causing an asset bubble. Its not ancient history.