Paul Rosenberg – You might think that throwing free money into an economy would create a permanent party, but it never quite turns out that way. And I think it’s important to understand why. After all, we’ve been watching a free-money party since 2008, and if it ends, the morning after figures to be deep and dark.
What if They Built a Building and No One Came?
One of the primary uses of all the free money since 2008 has been real estate, aka building lots of shiny new buildings. But how many of those buildings do we really need? And what happens when we pass that number, whatever it is?
I don’t know what the “don’t need more” number is in my city, but I can make an educated guess that we’re past it. Not that the condos aren’t selling and the offices aren’t filled, you understand… people from the outer areas (mostly young) have moved to the center, filling up the new condos. The suburbs and neighborhoods are withering as a result, but the core still looks golden.