| John Burns - 1/12/2017 20:47
So would farm land.
Think if easy credit was not available to purchase land and only people with savings were the only bidders.
Credit expansion equals expanding money supply equals rising prices (but no guarantee all catagories, only the ones where the money is flowing - right now bonds, common stocks, farm land, etc.). Credit contraction equals lower money supply with not as much checkbook currency to buy goods.
Easy credit drives up the price against what someone who saved has to pay because additional new money is there to bid that did not exist till the loan was taken out. If new credit was not available, the saver would not have the competition.
John
If only people with savings bought land there would be very few farmers owning land. Especially young farmers who should be the ones buying |