More insanity. I wish that people understood that a society that requires constant growth to maintain a quality of life is 100%, certifiably unsustainable. Growth is an exponential function, and we live on a finite planet. Our leadership, if you can call the Fed that, is an utter failure in that they insist on telling people the same sorry fairy tales to maintain this temporary status quo rather than addressing long-term solutions.
It is particularly unsurprising that a Fed official that lives in an area with some of the most overpriced real estate wants to take measures to blow it up further.
I think that the US's housing bears and analysts have grossly underestimated the lengths that the central banking nexus can and will go to to blow up real estate (I certainly did!). It has certainly taken me by surprise. So, it looks like Roberto & Iwog made the right choice for now, and probably into the next 5+ years. With tonight's Obama victory, I think that housing will only continue to inflate relative to mean incomes as new debt-enslavement products are introduced in the further perversion of the word, "affordability". At this point I would be happy if everyone just stopped calling it a housing "market" and started calling it what it is, the "housing autocracy."
More insanity. I wish that people understood that a society that requires constant growth to maintain a quality of life is 100%, certifiably unsustainable. Growth is an exponential function, and we live on a finite planet.
With further extraction of resources less viable. And the real industrial production shifted to slave plantations overseas. The new push for the script printers is clearly control of the place where you do the one thing that you can't not do: lie down to sleep.
1980s were pretty good, with 5%+ spending expansion
2000s, same thing.
Both those decades had massive consumer credit expansions, too, which made things pretty happy for everyone (until the bubbles burst in 1989 and 2008).
We need to cut spending $500B/yr, raise taxes $500B/yr, and pray for $500B/yr in "a bigger economy" to cover the rest.
And this doesn't even count how we need to increase taxes a lot more to cover the baby boom retirement's cost. We can't borrow that, we're borrowing enough to keep afloat as it is. We can print it, but that way lies Zimbabwe eventually, I think.
But as mentioned above, real estate doesn't appear to be a horrible hedge against continued insanity. Chances are we're going to print and not 'eat our peas'.
Our present Washington/real estate/banking/wall street crowd is like having doctors and paying them to treat a minor ailment. Then realizing they took life insurance out on you and infected you with an incurable disease.