How an Economy Grows and Why It Crashes

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T H E   H U T   G L U T
income for a hut. Now they were paying 10 or 20 times. 
People bought huts that they knew they could not afford 
in the belief that they could sell in a few years for far 
more than they paid. With that kind of profi t potential, 
no downside risk, and oodles of government incentives 
including subsidized loans at artifi cially low interest rates, 
nobody could resist.
But the rapid rise in hut prices was a boon to the senators. 
The easy riches made voters feel wealthy and provided 
circumstantial evidence of wise economic leadership. 
Naturally the senators took every effort to keep the merry-
go-round spinning.  Ben Barnacle, and even the elaborately 
esteemed Ally Greenfi n, assured all that there could be no 
such thing as a hut glut, because hut prices simply could 
not fall.

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