Comment by avs733
19 hours ago
Except the housing market, especially the rental market, is still significantly driven by small rental property owners and is a significant source of generational wealth transfer.
Starting with the assumption that all or even most investors / actors are rational is a continuing pox on both economic scholarship and societal thinking
It doesn’t require all or most investors to act rational. A small percentage of rational actors still moves prices.
Moving prices is not the same as moving the market, and famously the market might cause them to go insolvent faster then the market goes rational. Which would mean that they weren’t actually rational and this is all circular reasoning?
actors are in aggregate rational and self interested, but emotions are important.