Loading...
Loading...

A sitting U.S. president just said the quiet part out loud.You can’t make housing affordable without knocking prices down,and knocking prices down would wipe out the life savings of tens of millions of people.That single contradiction explains why housing is broken, why politicians are trapped, and why every “solution” avoids the real problem.This video breaks down: • Why housing prices are structurally protected • How homes became savings accounts and retirement plans • Why debt and longer mortgages don’t fix affordability • How the financial system props up housing prices at all costs • And what all of this has to do with broken fiat money and BitcoinValue 4 Value: If you enjoyed this content feel free to zap me some sats via the lightning network: [email protected] or https://coinos.io/thesatstackerNYKNYC. Buy Bitcoin and withdraw to self custody with Bitcoin Well. Use my referral link for a chance to win free sats: https://bitcoinwell.com/referral/mftabFollow:https://x.com/thesatstackprimal.net/thesatstackerhttps://www.tiktok.com/@thesatstackhttps://open.spotify.com/show/4b58uoQo9Xl7RsbsbbAqAhhttps://podcasts.apple.com/us/podcast/my-favorite-thing-about-bitcoin/id1788973938http://fountain.fm/show/YqXJoHuG6qYRBmDW1k37Chapters00:00 – Trump says the quiet part out loud00:54 – The core housing affordability paradox02:00 – Who benefits from rising home prices03:38 – Why falling prices are a systemic risk04:04 – Why zoning & NIMBYs aren’t the root cause05:00 – How housing became monetized06:09 – Why broken money turns homes into assets07:47 – Credit expansion, zero rates, and housing hoarding08:43 – Debt sold as “affordability”10:09 – How mortgages and leverage push prices higher10:58 – Mortgage-backed securities & Fed price support12:18 – Why longer mortgages don’t fix affordability13:09 – 2008 and the lesson policymakers learned15:29 – Sellers vs buyers: why prices still won’t drop17:45 – Why real affordability is not allowed19:00 – The only way out: fixing the money19:52 – Housing is already falling… in Bitcoin
There's two thoughts on housing.
You have a lot of people have housing
that because we have such a strong time
and such a strong market there.
Houses are very valuable.
It's a big part of their net worth.
I don't want to knock those numbers down
because I want them to continue to have a big value
for theirs.
At the same time, I want to make it possible
for young people out there and other people to buy housing.
In a way, they're at conflict.
In other words, you create a lot of housing.
All of a sudden, it drives housing prices down.
So that's the president on video saying the quiet part out loud.
I don't really think he was supposed to say that.
I don't think I've ever heard another politician say that
and relax. This video is not about him.
It's about what he said.
It's about the fact that what he said
is one of the biggest problems at the core of the entire economy
that almost never actually gets addressed.
Housing has become completely unaffordable
and you cannot make housing more affordable
without knocking home prices down.
Sounds pretty simple, right?
Well, the problem is knocking home prices down
would flat out destroy the life savings
of tens of millions of people.
This is a paradox that exposes one of the most misunderstood
and deeply broken parts of our entire financial system.
And in this video, I'm going to break the whole thing down
from what the problem is to how we got here
and how we solve it.
Real quick, you're watching The Sad Stacker Show,
a Bitcoin show for people who think deeper about money.
I'm your host, my name is John AKA The Sad Stacker.
If you want to learn to stack smarter
and better understand and grow your conviction in Bitcoin,
you hit the subscribe button.
And let's look at what the sat dragged in.
So this is the core contradiction
that underpins one of the most broken parts
of our entire economy.
And nobody wants to admit it.
We have a housing affordability crisis.
I'm personally talking about the US,
but I'm sure it's probably true wherever you live too,
if it's outside the US.
And politicians will always talk a big game
about wanting to make housing more affordable,
wanting to build more affordable housing,
wanting young people to have a shot at the American dream.
But of course, it's all complete bulls**t.
They don't actually want that at all.
I happen to have an economics degree,
but you definitely don't need one to see the problem.
Home's getting more affordable is the exact same thing
as home prices falling.
The only people who want home prices to fall
are people who don't own homes yet.
And who doesn't own homes?
Basically, young people and poor people.
Now these days, more and more of the middle class too,
which we'll get to, but think about it,
who owns real estate?
A whole lot of old people and a whole lot of rich people.
Which of these two opposing demographic groups
do you think has more influence and political power?
The young in the poor or the old in the rich?
And which of those two demographics
do you think most politicians fall into?
Take one example.
The guy you just heard from, Donald Trump,
the president of the United States,
is a freaking real estate guy.
You think he wants real estate prices to come down?
Of course he doesn't.
He is absolutely clamoring for the Fed to cut interest rates.
Do you think cutting interest rates
makes homes more affordable?
If you do think that,
then you've been sold a complete lie,
which I'm about to expose.
If home prices rise,
the net worth of the politicians,
the boomers, the rich, the wealthy, the powerful,
basically everyone who has real political capital
and influence in society,
and also just millions and millions
of other normal Americans whose net worth
is tied up in their house,
their net worth goes up.
And if home prices fall,
all those people are totally pissed.
To be fair, it's not just rich people who own real estate,
but the problem is that even for the vast majority
of normal people who are homeowners,
the majority of their net worth is in their home.
That's partly why home prices falling
is now quite literally a structural risk
to the entire economy.
And I'll explain what that means in just a minute,
but first we have to explain how the heck
we got here in the first place.
Yes, I understand that not every single home price
goes up linearly in a perfect straight line.
For certain parts of the country
or certain short periods of time,
home prices do fluctuate temporarily.
I know that.
But overall, nation wide, home prices cannot fall
in any meaningful way or for any sustained amount of time.
The question is why the hell not?
And the answer is, of course, on one hand,
incredibly complicated.
But on the other hand, it's incredibly simple.
On this side, you got zoning laws,
nimbis, building regulations, et cetera, et cetera.
And I'm not going to pretend to be an expert
in every single one of those issues,
but fixing any one of those issues
is putting a bandaid on a bullet hole.
Those things do matter and they contribute to the problem,
but they're not the root of the problem.
To understand the root of this problem,
you have to zoom out because the real issue
is what's called monetization.
Sounds like a big fancy buzzword.
Don't click out the video just yet.
All it means is we've monetized housing.
You see, housing by itself is just a utility good.
It's just shelter.
It should be priced solely based on supply and demand
for its utility of providing shelter.
But of course, it's not priced that way.
Because for most Americans, their house
isn't just where they live.
It's their savings account, their retirement plan,
their largest single asset, and for a huge percentage
of the country, most of their net worth is in home equity.
So as a society, we've taken the basic human need of shelter
and we've turned it into a financial instrument.
What could possibly go wrong?
Monetizing housing means we've taken that utility good,
which is shelter.
And now we have a bunch of people storing their money
in their house, which means houses have speculated value
over and above their utility value.
It means housing has what's called a monetary premium
on top of it.
Think of it as two layers of value.
One is the value of the house for its utility
of providing shelter.
And the other layer on top of that is the monetary premium
that it garners just from being a store of value.
And all this is basically because the fiat money
that we are forced to use, the government issued
central bank manipulated paper and digitally printed
federal reserve IOU tokens, they are dog sh** at storing value.
Fiat money is completely broken.
Nobody wants to hold any of it longer than they absolutely
have to.
Anyone with leftover fiat wants to get rid of it
as fast as they possibly can.
They want to buy things that they believe will store value
better than fiat will.
And they buy things that they believe will have persistent
demand into the future.
And what's got more persistent demand than housing?
In short, we've monetized housing as a store of value
because we can't store value in our actual money
despite the fact that one of the central key functions
of money is supposed to be storing value.
So if you could store value in the actual money,
you wouldn't need to store it in practical goods
or utility goods like housing, which obviously drives up
their price and prices out the people who just need them
for their practical purpose.
I hope you're starting to see how this all came to be.
When you break the actual money and people start storing
their money in houses, it distorts the value of housing
for its practical purpose of providing shelter.
Of course, I know there's always going to be rich people
or people who want a second home or a vacation home.
That happening few and far between is not a systemic issue.
But if you authorize banks to print new money for mortgages
and implement zero interest rate policy for over a decade,
then of course, you end up incentivizing
an entire country of people to hoard homes, flip homes,
go into debt up to their eyeballs,
throw in corporations and hedge funds and privately
everyone in their mother trying to gobble up
as much of the housing supply as they possibly can.
Anything but hold on to their dirty debasing fiat.
Because everyone knows the government will keep
printing fiat and debasing the value of the dollars.
So what do you think this all means for regular ass normal
people who are just trying to afford shelter?
All that artificial demand for people
who don't want to buy the house to live in it,
but simply to make money off it.
They're all working to price out people
who just want a place to live.
But of course, it does not stop there, not even close.
Remember that politicians can't just admit
that housing won't be affordable.
That would be a debt sentence as a politician.
So they have to give lip service
to making housing more affordable.
So what do they do?
Well, they turn to solutions like,
let's let them borrow more money to afford their house.
Just take on more and more debt,
lower the down payment requirement,
stretch the monthly payments out,
and then people don't even actually need the money
to afford the house,
as long as they can barely scrape together enough
to afford the monthly payment.
We'll let the banks create the money at a thin air,
and then we'll let the buyer chain themselves
to 360 months worth of payments.
I just did a full breakdown video on this idea,
which you can watch here if you're interested,
but suffice it to say,
if you can borrow newly created money to buy something,
that thing will always skyrocket in price.
Think housing, cars, higher education, even healthcare.
People love to think of mortgages
as making homes more affordable
when it's actually the exact opposite.
Mortgages make the monthly payments look more affordable,
but what they actually do is make the prices go up
and the total overall cost of ownership go through the roof.
Just think about it.
The more you can borrow,
the more you can bid for the house,
and the more your neighbor can borrow,
the more he can use to out bid you.
And of course, the more you borrow,
the more you owe an interest to the bank
over the life of the loan.
Think about the flip side.
What do you think would happen to home prices
if people couldn't leverage their down payment
five or 10 to one,
and take out hundreds of thousands of dollars
that are created out of thin air
in order to buy the house?
Of course, in that imaginary scenario,
home prices would have to come down
because nobody would be able to afford one 100% in cash.
And yes, in case you didn't know
when the bank gives you a mortgage,
they literally just create the new money
out of thin air in the form of credit.
And then you think about that for a second,
if you're the seller of the house,
the bank just created hundreds of thousands of dollars
out of nowhere and gave them to you in exchange for your house,
something just doesn't add up, right?
Sounds weird when you put it that way.
But surely the banks don't want people
defaulting on the loans,
so they are very prudent about the risks
of how much and to whom they lend out the money, right?
Well, that might be true,
if banks actually held the loans to maturity,
and they had to bear the risk of default,
which, of course, they don't
because modern mortgage markets broke that incentive structure
a long time ago.
Now they can just take the origination fees
and then package up all the loans
and sell them off as mortgage-backed securities,
so they're no longer on the hook for the default risk.
And guess who owns over $2 trillion worth
of mortgage-backed securities?
That's right, the Federal Reserve,
the Central Bank themselves, $2 trillion worth,
and where did the Federal Reserve get the money
to buy all those mortgage-backed securities?
They printed it out of thin air, too, of course.
So right now, what you should be thinking is,
wait a f***ing second, when I take out a mortgage,
the bank creates the money out of thin air.
Then the banks package up a bunch of those mortgages,
sell them to government-sponsored enterprises
like Fannie Mae, Freddie Mac, or other dealers or whatever.
It's very complicated in between.
But somehow a bunch of them end up
selling those mortgage-backed securities
to the Federal Reserve, and the Federal Reserve
pays for them by creating bank reserves,
which is another way of saying,
newly printed money that they type into existence from nothing.
And that, ladies and gentlemen, is how it's done.
One of the greatest fraudulent magic tricks
you'll ever see right in front of your eyes,
systemic price support for the incumbents,
and everyone else is royally screwed.
Why do you think, in addition to the clip
that we saw at the very beginning,
Donald Trump also recently started floating
the idea of 50-year mortgages.
Because, of course, that's the only way
to make housing more affordable,
not to bring prices down,
but to stretch the monthly payments out to 600 of them
to make you feel like the house is more affordable
on a month-a-month basis.
But what does that actually do?
Of course, it allows buyers to borrow more money
and bid up the asking price, which in turn
will wipe out the supposed affordability.
But it will prop up housing prices
and create tremendous amounts of exit liquidity
for boomers whose entire net worth is in their home,
and they want to unlock it before they, you know, you know.
But by now, I hope you're seeing how systemic this truly is.
The entire economy is built on the house,
pun intended, of cards that is the real estate market.
Of course, this entire time I'm talking,
you should be thinking of the big short 2008,
the global financial crisis.
We saw all this play out 17, 18 years ago,
home prices fell because they were artificially propped up
to begin with, and because that bubble
was entirely built on debt, you know,
credit creation fueled by central bank money printing,
it wasn't built on any real value or real equity.
And because of that, it almost collapsed the entire economy.
We were told that the only reason it didn't
is because the government stepped in to bail out the banks.
So the banks, of course, did not have to bear the consequences
of the irresponsible risks that they took.
And again, the government conjured about $800 billion
of newly printed money out of thin air
in order to bail them out.
So of course, the lesson that the banks and the government
and everybody learned from that was,
don't over-inflate housing because of the systemic risk
that it poses, right?
No, of course, that's not the lesson they learned.
The lesson they learned was never let housing fall again.
Think about the logic of what just happened.
They inflated an artificial bubble in housing,
and when it burst, they went to zero interest rates
for seven straight years, basically artificially held rates
near zero for 15 years, which reminds me of a little thing
that happened in the 1920s,
where there was tremendous credit expansion
fueled by central bank money printing
that caused the bubble that led up to the Great Depression
when it popped in 1929.
And to this day, some Keynesian economists will tell you
the depression was the fault of the gold standard
because the gold standard didn't allow
for the ability to print more money
because we need to be able to print more money
in order to respond to these types of crises.
You know, those crises that we caused
with too much money printing and lose credit in the first place
because in the twisted world of the Keynesians,
the cure for the drug overdose is always more drugs.
So here we are in 2026.
This is probably coming out on New Year's Day,
happy New Year, the housing market and the banks
were already too big to fail in 2008.
And now, even the president admits
it's way too big to fail today.
In the US, there are something like 70 to 75
million baby boomers alive today.
And they hold about $20 trillion of residential real estate.
It's about 40% of all US real estate wealth.
You tell me if you really think that anyone
in a position of power is going to crash that
so that whiny millennials and Gen Z's can quit paying rent.
No f***ing chance.
But right now, there is a problem.
There is a crack starting to show in the dam.
There's recent data from 2025 that shows there are 530,000
more sellers than buyers in the housing market.
The largest gap ever recorded.
In any normal market, that would mean
prices would already have started falling.
But for some strange reason, they mostly aren't.
You have stubborn homeowners who watched the estimate
of their home shoot up like 40% or 50%
during the $5 trillion pandemic money printing bananza.
And now, they don't want to sell for any less than top dollar.
Many of them probably want to unlock their seven-figure net worth
by dumping their overinflated pile of rotting wood
and drywall on some schmuck zillennial.
But they don't really have to sell it if it means
taking a dollar less than the peak delusional valuations
they got used to seeing in 2022.
They're probably sitting on a 2% mortgage
with massive unrealized gains and they're holding an asset
that they've gotten used to seeing double in value
over the last seven years.
They might as well just wait for the market to recover
or for Trump to get his wish of 1% interest rates
and 50-year mortgages so some desperate
zoomer can take out a million dollars worth of debt
to provide exit liquidity for the retirees.
That, of course, is where we're heading
because falling prices are radioactive for everyone who matters.
Falling prices mean falling net worth.
Falling net worth means voter revolt.
Politicians know this.
That's why Trump said what he said.
And that's why the only solution will be more
financial engineering.
Longer mortgages, lower interest rates,
more subsidies, more credit expansion,
anything except letting prices actually fall.
Never mind that sometimes in an actual free market
prices are supposed to fall,
especially if they've been artificially inflated
to begin with.
The bubble bursting is what allows the rotation
of the asset from incumbents to new entrants,
but the systemic propping up of the price of the asset
never allows new owners to rotate in.
So yes, building more housing would definitely help
at the margins, but actual affordability requires
real lower prices and lower prices are not allowed
because lowering prices means nuking the net worth
of everyone who benefits from the status quo.
And at the extreme, it means admitting
that the money is completely broken
and housing never should have been a store of wealth
in the first place.
I mentioned the boomers lie heartedly a couple times,
but of course this is not about boomers being evil,
though let's just admit real quick
that there is no shortage of evidence
that they did their part to pull up the ladder
once they got on the roof,
but they didn't break the money in the first place.
They benefited from it being broken to a large degree,
but they didn't break it.
We're at the point where all inertia and all incentives
just point in one direction.
The system forces everyone to defend high home prices,
homeowners, investors, bankers, politicians, governments,
that's where the net worth of tens of millions of Americans
is stashed and it's become the bedrock
of the entire fiat Ponzi.
And nobody wants to be the one that pulls that pin,
which brings us to the way out of this mess.
I know so far this all sounds like a lot of doom and gloom.
We've traced the distortions in the housing market
all the way back to dirty debasing broken fiat money.
And that means, in my opinion,
that every potential fix that doesn't address
the broken money at the core is just
patching another hole on the side of the Titanic.
When people can save in real money
without it losing its purchasing power,
then they don't need to save in housing
and housing can go back to being shelter,
not a retirement strategy.
And here's over you to the silver lining,
because whether you like it or not,
it's already happening.
You might be a homeowner who's afraid of it
and doesn't want it to happen,
or you might be a renter who welcomes it,
or you might be a banker or a politician
who absolutely hates it, but it doesn't matter.
It doesn't matter!
Because housing prices are already crashing,
affordability is already being restored.
If you know how to measure it in Bitcoin,
if you shift your lens, you shift your monetary energy
away from broken dirty debasing fiat
and into hard money, sound money
that can't be printed, controlled, or manipulated,
then you see the truth.
Housing is just a utility good
and all prices fall in terms of Bitcoin forever.
If you're a boomer whose net worth is in your home,
you better watch out.
This deflationary black hole is coming for you.
And if you're a zoomer who's still dreaming
about the 2.5 kids and the white pick offense,
that dream is still a reality
if you're saving in Bitcoin.
That's why it's so important
that you learn to stack smarter
and grow your conviction in Bitcoin,
which of course is why you subscribe to the channel,
and you watch this video right here.
You can zap me sat via the Lightning Network
using the QR code on the screen
and as always, you never forget.
Quit slacking and start stacking.
Quit slacking and start stacking.
Quit slacking and start stacking.
Quit slacking and start stacking.
Quit slacking and start stacking.
Quit slacking and start stacking.
Quit slacking and start stacking.
Quit slacking and start stacking.

The Sat Stacker Show | A Bitcoin Podcast

The Sat Stacker Show | A Bitcoin Podcast

The Sat Stacker Show | A Bitcoin Podcast