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I've watched my Savings Account APY go from 0.4% last year to 3% - before this latest hike. Still pretty bad compared to inflation. On the other hand, is it ju

I've watched my Savings Account APY go from 0.4% last year to 3% - before this latest hike. Still pretty bad compared to inflation. On the other hand, is it just me, or is the Fed really addressing a symptom and not the cause? Sure, inflation will be finally squelched, but the housing market will be on life support because of the absurd rates, coupled with already absurd prices even if the increases have ceased. Fix that, and inflation will come roaring back...?

vkou 4y ago
> but the housing market will be on life support because of the absurd rates. The housing market should have been taken out back and shot decades ago. There's no universe in which a dwelling in a proper city[1] can cost a million dollars, while median wages are in the 50-60k range, and low-class wages are 35-40k. You can't have housing be affordable to normal people and also be a profitable investment. One of these has to give. [1] Houses in third-tier and fourth-tier cities (medium income closer to 30k) - the kind of places that everyone with means wants to get the hell out of - are going for 300k+.
- cjbgkagh 4y ago
  It can exist so long as the middle class still have wealth to plunder, which is the real point of financializing housing. These distortions will be maintained so long as they serve that purpose. With millennials and later generations being largely unable to build wealth the middle class is on its way to being tapped out.