So housing prices are making new highs because of a “lack of inventory,” but homeownership rates are at 1980s levels.
At least in #housingbubble1 the prices moved in lock step with ownership. Now due to artificial scarcity the prices have detached.
After the bubble burst in 2007 many banks and hedge funds bought up the foreclosures making available inventories tighter causing the supply < demand and inflating the 2nd bubble. The rate is just what % of pop owns
Please tell me how hiking rates will help inflation?
Yes, it may slow the economy and hirinhg but it will also reduce housing supply. Largely self defeating.
Dr.Powell, let it rip. Growth pop is short term and driven by energy & tax cuts. It’s not durable. Don’t wreck labor. pic.twitter.com/9Q2isPsqTQ
— The Long View ⚫️ (@HayekAndKeynes) June 7, 2018
America quit saving.
Households are getting squeeze by higher gas prices, recently pushing the savings rate below 3% pic.twitter.com/i1pWna5uSb
— The Long View ⚫️ (@HayekAndKeynes) June 4, 2018
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