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You'd be hard pressed to see where quantitative easing began and ended looking at this graph of home prices in California, San Francisco, and Santa Clara County
by ac29 9y ago
You'd be hard pressed to see where quantitative easing began and ended looking at this graph of home prices in California, San Francisco, and Santa Clara County [0] (from a longer report here[1]).
From your linked article, QE in the US lasted approximately 2008-2014, with some of the steepest decrease in home prices occurring during that period, and steepest increases occurring after it ended.
I'm not entirely sure there is compelling evidence QE contributed to housing price increases in California or the Bay Area, but I'd be interested if anyone had data to the contrary.
[0] http://www.lao.ca.gov/reports/2015/3305/Bay-Area-Home-Prices-Outpaced-the-State.png http://www.lao.ca.gov/reports/2015/3305/Bay-Area-Home-Prices...
[1] http://www.lao.ca.gov/Publications/Report/3305 http://www.lao.ca.gov/Publications/Report/3305
- joe_the_user 9y agoSigh... The processes involved here are much larger scale than the particulars of the California housing market (indeed, if you read my original you'll I already mentioned that California is just one blip in world-wide trend). California just happens to be a place which attracts money when money is being "manufacturer". Whether one has quantitative easing in particular or too-big-to-fail banks issuing bonds or simple bubble-dynamics, you have a process where money flows from productive assets to stores of value. If someone wished to learn something about the current financial climate, I would refer that someone to Doug Noland's Credit Bubble Bulletin. http://creditbubblebulletin.blogspot.com/p/credit-bubble-bulletin.html http://creditbubblebulletin.blogspot.com/p/credit-bubble-bul...