Comment of the day
There are 3 options:
1. Pull the Fed rate subsidy and housing prices WILL fall further, the only question is exactly how high rates will go and exactly how low prices will fall.
2. Keep the Fed rate subsidy program going indefinitely. The price of housing measured in dollars will be higher, but measured in anything else, gold, gallons of gas, gallons of milk, or loaves of bread, it will be lower.
3. Pursue real pro-growth policy that leads to higher wages and allow those higher wages to drive up prices.
One thing the prior decade showed us is that asset appreciation brought about by financial engineering is unsustainable. The supports being offered now are merely financial engineering, be it on a much larger scale than Wall Street.
Do you agree that those are the only options? What do you want the Fed to do (or not do)?