Why the Dutch houses can't be paid

543 · 1 min read · 17 Oct 2018 · 41

In 2013, Jesse Frederik wrote the article “Why Dutch houses cannot be paid”. In this article, he explains that the majority of house price increases are caused by banks and not so much because of rising construction costs or an imbalance between supply and demand: https://bit.ly/1bAV6f9

In other words, as long as money-creating banks continue to inflate house prices, just building more houses will not solve the problem. Something Kate Allen articulated nicely in the article below:

“In short, the 'housing crisis' needs to be understood primarily as a product of the banking system, not a function of construction volumes.''

Source: House bubble Money Creators

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