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With interest rates going up, housing market is heading down

The David McWilliams Podcast

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Is Rent Capping a Good Idea?

Ri xenophons fund is a leveraged special purpose vehicle, which means they put in ten dollars, they borrow 90 dollars. If their property prices fall, they then have to sell in order to raise cash - called margin. They always want to sell this shitty stuff first, ok? Sur sei. The interesting thing is, if all these companies go bust, who cares? But it will look ridiculous right now. When interest straits rise, you don't want to have any debt on your balance sheet, because it destroys you. So the good becomes bad.

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