The following essay is the work produced for the peer-graded assignment in the

Financial Markets course offered by the University of Yale under the guidance of
Mr Robert Shillen through Coursera.

United Nation Human Hight Council 2017: Report on Financialization of the

Housing

Introduction & Thesis Statement

Greta Krippner of the University of Michigan writes that financialization refers to a "pattern
of accumulation in which profit making occurs increasingly through financial channels rather
than through trade and commodity production. In case of Housing Estate market, Real
Finalization ours after World War II, which played a vital to normalized World GDP but also
resultant to form new Corporate Sector of Real Estate, it opens door of new era of self-
sustainable & energy sufficient cities, but as every light has a dark shadow, rapid growth of
the sector not only attract genuine client but doobies entities also, not because of any
mistake of Financial Markets but because lack of regulation national & international &
market superstitions

In 2017 Special Rapporteur Leilani Farha of U.N.R.C states in her report (A/HRC/34/51) that the
financialization of housing has detrimental impact on the right to adequate housing thus cause
mass evacuation of pre-settled societies & Homelessness.

In my opinion this report only based on biased opinion & written without knowledge & impacts of
Capitalization of Markets plus this report only as skeptical view which only worsen the condition
thus Report only serve the purpose of nothing.

Advantages of Financial Capital in Real Estate

a) Home for Every American

According to United nation Human Right Council Report (A/HRC/RES/6/27) “Adequate housing as a
component of the right to an adequate standard of living” quotes that Housing is the basic
human right human, According to the American Census Bureau in 1950’s only 44% of every
family owns a house but now in 2020 its 77%, it is only Possible because of Financialization,
which enable rapid growing American Middle Class to do so which otherwise impossible.

b) Real Estate a Potential Market

The union of Housing industry & Financial Markets not only provide the essential need of shelter
but also investment opportunity in an booming Growth economy.

c) Real Estate growth & Adjacent Industries

The rapid growth of Real estate also give boom to its connected industries Like Cement, Brick,
Home Décor thus being the case of massive growth of its overall economic environment.

d) Real Estate & Modern Industrialization

The Modern Industrialization cannot occur without the help of real estate with provide the
housing for worker from rural areas & give structure to industries itself to do what’s their target
is.

e) Real Estate incubator of Modern Housing innovations

The introduction of Market Capital made Possible for innovator to think out of box to Cities as
area of Energy-Sufficient & Food-Sufficient places for every metropolitan, because of
financialization that people began to think home not only place to live but a luxury also new
approach emerges from that.

Real Cause of Real Estate Bubble to Crash

a) Lack of Planning within Organizations

One of the causes of Real estate crash is lack of planning within the organization to cope up with
the pace of market growth.

b) Lack of understanding of Markets from its Players.

Core cause of 2008 Crash is that the Bank & Estate industry doesn’t have the enough knowledge
to foresee the overall economic situation & only look upon profit they made. They even don’t
think that the Housing prices will ever falls.

c) Lack of Market Regulation from its Players.

There is almost no regulation set by Stock Markets to Real Estate for avoidance of Crash thus
caused mess in the Market.

d) Lack of Lawmaker Look & Regulation to Real Estate

As the Real estate Industry never ever face a crash, the Regulator has no attention on it which
eventually end on Market turmoil.

e) Real Estate as Tax evasion & Doobies Money Parking Lot

As because of all above factors the Real estate somehow became the Tax Evasion Spot & the
illegal Money Parking Lot.

f) Lack of innovation & introduction of new tool in Financial Markets

As the financial market doesn’t evolve as it must be this cause the laziness in the market so
market only become photocopy model so this the market growth became Bubble & crash at last.

Report Suggestion & its Circumstances.

If the Report considered true One-O-One then maybe following scenarios can happened

1. Lack of Corporate development

For every sector to develop its essential to take corporate development in it, as the report snubs
the corporate investment thus result in further shortage in housing sector.

2. Lack of Capital in Real Estate Sector

From dried up the corporate sector from real estate caused only to lack of cash in the sector
which also only worsen the case.

3. Make Housing further from the range of Under Privilege.

Without the Mortgages & other Financial Tools Residential House onus became impossible for
middle class & under Privilege.

4. 1920 Alcohol Ban in America

There is already a failed case of Alcohol ban in America which does nothing for the purpose &
only produce illegal means in the society, perhaps the too much regulation on real Estate does
the same on Housing Sector.

5. Failed Case of New Zealand

In 2018 New Zealand Banned Foreigner to invest in real Estate only worsen the Country
economy of 0.5 % GPD & no improvement in over pricing & homeless of Country.

Conclusion

The Rapid Growth of Real Estate industry serve millions of people through out world & overall
World Growth & innovations. Yes there are inefficiencies & adverse Effects of it also but there is
no mistake of Financialization but on lack of Regulations, innovation & Transparency in the
sector.

In my Humble Opinion the Reports Doesn’t Identify the Core Issue & its Solution, only trough
blame game thus result more turmoil on the issue for no good of human being.

By Muhammad Ehtisham-ul-Haq