A shockingly large price bubble appears to have formed in the real estate market.
Although it’s impossible to predict economic crashes with certainty, a key economic indicator suggests the U.S. housing market is on the verge of an unprecedented crash, one that could end up being the biggest in America’s history.
Following the 2008 stock and real estate market crashes, the Federal Reserve, Democratic-led Congress, and the presidential administrations of George W. Bush and Barack Obama began an unprecedented effort to pump new dollars into the financial system — and, to a lesser extent, the economy at large.
The strategy behind the flood of quantitative easing, government takeovers, stimulus checks, and government welfare programs that followed was that the Fed, working in conjunction with Congress and the White House, needed to prop up the economy to keep it from sliding completely off the cliff.
One of the primary tools the Fed used to accomplish its goals was to keep interest rates at near-zero for years on end. From 1980 to 2000, the Fed’s federal funds rate — the primary driver of interest rates economywide — rarely dropped below 4 percent, and it was common for interest rates to be 5 percent or higher.
However, from 2009 through 2016, interest rates were consistently much lower than 1 percent. Beginning in 2017, the first year of the Donald Trump presidency, the Fed began to more aggressively raise rates, but it only briefly topped 2 percent in 2018 and 2019 before the Fed once again slashed rates to near-zero as part of its plan to address the effects of the Covid-19 lockdowns.
When interest rates are kept low, it’s easier for governments to spend more money than they take in, because debt is cheap. Additionally, banks and other financial institutions are more likely to lend out money for high-priced items.
Whole country CRASH > Thanks to Biden & his Demon-crats !!!!
Stock Market & the REST going Down or IMPEACH BIDEN, HARRIS, PELOSI Take your Pick !!!
Key indicator is called BIDEN !!!!!!
Everything Democrats in the Stolen White House & Congress have Done is to RUIN Americans & the country !!!
Make the room your kids and grandchildren will be moving in if they haven’t already. I can’t keep paying the mortgage they can’t. Bush senior was right were gonna wind up living more like the Waltons than the Simpsons. It’s all good I own my big home and land and have a great pension and savings. I would rather have them here and share it with them than leave it to them. It may not be the DREAM but what people forget is Americans know how to get through it. It’s not a new thing humans and primates have always lived in familiar enclaves of their own altruistically together sharing work and raising the young and protecting their elders. Maybe it’s all a good thing and we get back to our primitive instincts and not caught up Modern Acquisitional Insanity of work and consumption and success when maybe all that really matters is family. No one gets out alive. Life is just a biodegrational camping trip on a cosmic dust ball. It’s no wonder so many cultural religions
promise hope of a blissful afterlife. Cause there’s nothing but work toil and survival here.