From blind gambling to visible impact

  • Sebastien Garnier profile
    Sebastien Garnier
    2 November 2017 - updated 1 month ago
    Total votes: 1

Making housing finance work for society

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The Big Short (2015) The risks of overleveraged financialization of housing and speculation on homes of low income households in countries like the US, UK, Ireland, Spain and the Netherlands are clear after the financial crisis.
The Big Short (2015) The risks of overleveraged financialization of housing and speculation on homes of low income households in countries like the US, UK, Ireland, Spain and the Netherlands are clear after the financial crisis. This might have been adverted if the social outcomes and impacts for households and communities would have been tracked and would have re-diverted financial means into more socially responsible investments.
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The Big Short (2015) Plan B Entertainment

Finance and housing are both crucial for the functioning and wealth of our societies. However, they can form an explosive mix for our economies. The financial crisis clearly unveiled this. Two trends explain this.

First, housing gradually lost its initial function: provide a home to households. Gradually it became a financial commodity. Secondly, the financialization of economies led to a disconnect between financial assets and societal needs In the real economy.

Things are evolving, however. There is a now a new movement in the financial sector that explicitly wants to direct more financial means towards impactful investments for society. An excellent opportunity to remarry finance and (affordable) housing.

Read the rest on the Housing Europe blog