Jerome Powell is an idiot.
Only an idiot would look at spiraling tulip prices and define “price stability” as providing below-market loans for tulip buyers.
Alternately:
All previous economists, and all previous Fed chairs were wrong, and if the US is a prosperous country, then that is just dumb luck and happened despite 200 years of wrongness.
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Hmm, doesn’t seem likely.
Clearly, the present is a radical departure from the historical norms. A risky and never-tested experiment.
Maybe I am wrong to be pessimistic about the untried experiment, but an untried experiment is exactly what it is.
I predict it ends with home ownership becoming a thing for two groups those who currently own one and hands it down to their children or the top 7%.
Everyone else will have to do like most do in Ukraine and other second tier countries and get multiple roommates and rent forever. Home ownership will become a thing only for the few and will be a nation of renters.
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If we freeze the current situation in place, or continue in the current direction, something like that will likely happen. (See chart above.)
**WORST LEVEL EVER!!**
US pending home sales are lower than during the housing crisis
and lower than when . . .
checks notes
the entire country was shut down, including many banks, lenders, appraisers, realtors, and closing companies etc. , we had 13% unemployment and everyone thought they were going to die.
