What’s also crazy is despite rates going up, housing prices aren’t going down, they’re still going up. There is so much capital accumulated by the few, that even if the market dictates unfavorable deals for the common man, the massive capital holders honestly couldn’t give a shit cause they can just buy everything up anyways. We’re already reaching record levels of apartments/condos/SFH being owned by large corporate holdings and just renting them out.
With all the money pumped into the market because of COVID, I really don’t know how the Fed can get itself out of this situation without seeing a severe economic crash. It’s just a matter of if they will continue to put the economy on life support for an even bigger fall, or just let it happen whenever it comes.
how the Fed can get itself out of this situation without seeing a severe economic crash
I mean, it seems like just growing out of it is working. There’s financing costs for everyone who overleveraged or chose short terms for their debt… but that’s why there’s always a premium on term periods (longer terms give stability) and any reasonable person diversified rather than assuming low rates were here forever.
The money form COVID was a short term shock, it’s being pulled out now, just at a slower pace (and in some cases being allowed to let growth gradually overtake it).
What’s also crazy is despite rates going up, housing prices aren’t going down, they’re still going up. There is so much capital accumulated by the few, that even if the market dictates unfavorable deals for the common man, the massive capital holders honestly couldn’t give a shit cause they can just buy everything up anyways. We’re already reaching record levels of apartments/condos/SFH being owned by large corporate holdings and just renting them out.
With all the money pumped into the market because of COVID, I really don’t know how the Fed can get itself out of this situation without seeing a severe economic crash. It’s just a matter of if they will continue to put the economy on life support for an even bigger fall, or just let it happen whenever it comes.
I mean, it seems like just growing out of it is working. There’s financing costs for everyone who overleveraged or chose short terms for their debt… but that’s why there’s always a premium on term periods (longer terms give stability) and any reasonable person diversified rather than assuming low rates were here forever.
The money form COVID was a short term shock, it’s being pulled out now, just at a slower pace (and in some cases being allowed to let growth gradually overtake it).
Housing remains an issue; but it has been on the radar for a while (basically since the 2008 recession): https://econofact.org/the-housing-shortage-and-the-policies-to-address-it
indeed