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Comment by maxerickson | Hacker News Reader

The shift to long term mortgages ballooned house prices. If people conspired to pay banks less, houses would cost less (purchases are mostly made based on the monthly payment and perception that the price will go up, not on some more concrete valuation).

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The line of thinking behind this comment is exactly why we're experiencing rapid decline - zero ability to consider the root causes behind issues and how to address them at a fundamental level. "Hit back at the banks" is the kind of cable-news-hot-takes-style solution that only address issues caused by prior solutions.

Every single asset class has experienced significant inflation over the last 50 years. Banks created 30 year mortgages because of demand. Demand occurred as a result of actions by the federal reserve. The FHA, not really a bank but rather a government entity, started the trend.

My comment isn't an attack on banks though, it's just where mortgage interest more or less goes, into the banking system.

I suppose 'bank' can be bad shorthand for mortgage lenders, but whatever.

> If people conspired to pay banks less, houses would cost less

and so that one person who would really prefer a particular house/location (because it's a great house/location) would pay just a little bit more and guarantee that he/she gets it.

Guess what happens then?

Then it becomes attractive for the neighbour to sell their house. There are two sides to a market.

> If people conspired to pay banks less

There will always be people rich and liquid enough to buy houses in cash without ever involving a bank.

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