• tburkhol@lemmy.world
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    7 hours ago

    In contrast to the housing bubble, where a lot of the value was in overpriced houses sold to individuals, this overpricing is almost entirely in tech stocks, and tech stocks are almost entirely owned by by the wealthiest 10%, even 1%. The tech billionaires have limited ability to divest themselves of their own overpriced companies and absolutely will lose money.

    None of them are going bankrupt, they’ll all be just fine when the market recovers in a few years, because that’s the nature of capitalism. A bunch of peons, who convinced themselves that the bubble-value of their 401k meant it was safe to retire, will suffer, will have to go back to work - if you’re not an oligarch, losing money is painful.

    • WhyJiffie@sh.itjust.works
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      5 hours ago

      In contrast to the housing bubble, where a lot of the value was in overpriced houses sold to individuals,

      was?

      • chuckleslord@lemmy.world
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        1 hour ago

        34% of single-family housing are now rented out. We’re not building enough housing, a fact that hasn’t changed since the housing bubble collapsed. So, a lack of investment in new property, large funds putting money into existing properties instead, and less risky homeowners overall means we don’t really have a housing bubble. We have a supply shortage, leading to high prices. The correction for that isn’t a crash.