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I meant that those rates were more 'normal'. Housing was booming, but houses weren't outrageously expensive. Lowering the rates over time artificially inflated RE in my view. I'd rather pay 8% on something normally priced than zero on a million dollar home.
But yes, some RE markets are always hot, all cash, and the prices don't really decline there.
There was no such thing as normally priced for those who lived it ..I lived it .
I had just bought my first investment property in queens in nyc in 1987 …prices were soaring …
I was so happy to get an 8-1/4% mortgage .
Well the stock market crash hit and real estate crashed in many areas and when the smoke cleared my new investment was worth 25% less ….it took years to come back
Bottom line.
Greed.
The 1%,expects 2%.
Double the reward .
Let the minions keep digging themselves out of debts for even a roof or food.
Suppression is key .
Mind you ...profit is important . How it's margined is where the inflation kicks in.
Greed steps in. .
Really??? Low interest rates between 2001 and 2004 were the lifeblood of the housing bubble. Than in 2004 Greenspan started raising interest rates eventually by more than 4 percentage points. When he raised rates in 2004 clock began to tick. In 2006 default rates on mortgages started to rise rapidly and home prices for the first time started to fall. In 2007 everything started to implode and even Lehman Brothers collapsed.
Inflation is the expansion of the money supply, nothing else.
Expanding the money supply tends to cause currency debasement, as the more common and abundant something is, the less it is worth, generally speaking.
What we're seeing is not prices going up, but the purchasing power of the currency going down.
Purchasing power cannot be printed.
Fiat currency is legitimately nothing. It doesn't mean anything and it doesn't do anything. All it is is a claim on energy, labor, and resources. Far too many claims (units of currency) are being printed in relation to the energy, labor, and resources that actually exists, which means those claims must become increasingly worthless.
The bad news: this inflation will only get orders of magnitude worse. The governments and central banks will never fight inflation because they can't. The current global debt based fiat monetary system cannot function in a deflationary environment, which means that the inflationary fires will rage on, as the governments and central banks continue to poor napalm on that fire with continued QE, stimulus, etc.
Inflation is the expansion of the money supply, nothing else.
Expanding the money supply tends to cause currency debasement, as the more common and abundant something is, the less it is worth, generally speaking.
What we're seeing is not prices going up, but the purchasing power of the currency going down.
Purchasing power cannot be printed.
Fiat currency is legitimately nothing. It doesn't mean anything and it doesn't do anything. All it is is a claim on energy, labor, and resources. Far too many claims (units of currency) are being printed in relation to the energy, labor, and resources that actually exists, which means those claims must become increasingly worthless.
The bad news: this inflation will only get orders of magnitude worse. The governments and central banks will never fight inflation because they can't. The current global debt based fiat monetary system cannot function in a deflationary environment, which means that the inflationary fires will rage on, as the governments and central banks continue to poor napalm on that fire with continued QE, stimulus, etc.
I think the FED has no choice now but to CAPITULATE and start raising interest rates. ZIRP experiment has failed miserably and if the FED is ready now to pay the PIPER deflation that has been postponed since 2001 will finally begin.
As all resident wannabe investors can tell you here lthe FED “PUT” hasn’t been felt lately and buY the DIP sheme is NoT working anymore.
The FED has been telling everyone to SELL. Don’t FIGHT the FED.....lol.
Inflation rises when the abuse of power stands to gain from inflation, and so triggers it. And vice versa. A fairly small number of people are at the controls. If on any given day, a mogul sees inflation as favorable to his market position, he will use his power to tilt a sector toward inflation, and see gain from it in tomorrow's quotations, if not by the closing bell. So finely-tuned is the market, and so dominant are the few. The market theory could only evolve to this, and it has..
I think the FED has no choice now but to CAPITULATE and start raising interest rates. ZIRP experiment has failed miserably and if the FED is ready now to pay the PIPER deflation that has been postponed since 2001 will finally begin.
As all resident wannabe investors can tell you here lthe FED “PUT” hasn’t been felt lately and buY the DIP sheme is NoT working anymore.
The FED has been telling everyone to SELL. Don’t FIGHT the FED.....lol.
Good Luck!
If they raise interest rates than there will be less people buying.
The question was if inflation was high all long or the pandemic had some thing to do with the inflation going up really high. If the economy was bad and getting worse every year and the pandemic made it worse.
I guess if the pandemic was the cause or not. If the pandemic was not the cause than the economy was not so great. And if that is the case than main stream media and government was lying to the people how great the economy was up to the pandemic started and than blaming every thing on the pandemic and shortages of goods.
So in other words if there was no pandemic this probably would have happen in 2 or 3 years. Where the pandemic just speed things up. And if that the case you had high inflation before and they keeping inflation down by low interest rates.
The economy is shrinking. Only a small number of people own the supply of goods and services. So they control the prices, since they know the people in the community have no other means to obtain the goods and services. The prices will go up. Inflation.
Stop with your misinformation. Housing wasn’t booming, it was a BUBBLE just like we have the mother of all bubbles today. Greenspan started raising interest rates back in 2004 and housing market was at the peak back in 2006, slowed down dramatically in 2007 and imploded the very next year - 2008.
Get your facts right and stop with misinformation.
Please be careful of the 'misinformation' word. Just because he has a different opinion than you doesn't make it misinformation and I"m going to add that we have no idea if housing is a bubble ready to burst now or if it's going to take another 10 years. Nobody knows. IF we see defaults starting to go up like in '06 than maybe you are on to something but I don't think that is happening.
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