Affordable Housing
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The Nov. 27 article points out the inequities resulting from interest-rate policies.
The headline on Page 30, “L.A. Has a Glut of Luxury Units,” points out the results of investors’ policies.
Developers are prone to invest in properties that cater to those who benefit from high-interest rates. Conversely, they do not build facilities for the lower classes who have to pay the high rates. We must realize that a renter indirectly pays the interest rates to the developer.
High rates have inflated the cost of housing. High rates have also led to massive failures of savings and loan institutions.
As your headline states, high rates have provided luxurious facilities for the affluent. Other examples of the distortions of incomes by high rates are the booming markets in the art world, a symbol of large amounts of disposable income in the hands of owners of capital.
Unfortunately, it may take a recession to achieve lower rates, which will discredit a decade of Federal Reserve monetary policies.
LOREN W. JOHNSON
Lake San Marcos
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