by Charles Hugh Smith
Of Two Minds
To reverse the damage wrought by financialization, we must reverse financialization.
The post-election hope that festering problems can now be solved doesn’t seem to extend to unaffordable housing and homeless encampments, two blights on the socio-economic landscape. Perhaps this reflects a sense that these blights aren’t readily fixable, or an unsure grasp of the causes of these blights.
Let’s focus on the primary cause that led to unaffordable housing and homeless encampments. There are many contributing factors, of course, such as the NIMBY (not in my back yard) restrictions on new housing, the soaring cost of construction permits, materials and labor, and so on, but all these factors are subservient to one: financialization, which enriched the wealthy and incentivized them to pursue housing not as shelter for their family but as a low-risk investment that generates income and capital appreciation.
