patrick.net

I've stated before but nobody has heard me. Clear your mind. Now think about supply and demand. Thing about how the system works. Rates are controlled by the market. With an infinite (approaching) supply of money, rates will be near zero. Where does that infinite supply come from? If you think through how money/credit is created then you will know rates are a game. The only real market force is inflation. Rates are effectively meaningless because they are manipulated. So, inflation is what you must understand. IMO.

This is why people are buying gold. Whether or not they have understood it.

And of course, then one must realize wages have been stagnant. With inflation in food prices, deflation in pay (maybe changing finally), and inflation in taxes etc, it doesn't look good for housing prices. Lower rates are suckering buyers into an inflation hedge with a possibly very risky investment. There be dragons.