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This is the real-economy, human tragedy routinely overlooked within the Fed's policy mistake of unsustainably forcing down long interest rates. https://fred.st
by everybodyknows 3y ago
This is the real-economy, human tragedy routinely overlooked within the Fed's policy mistake of unsustainably forcing down long interest rates.
https://fred.stlouisfed.org/graph/?g=14ImM https://fred.stlouisfed.org/graph/?g=14ImM
Holders of big mortgages taken out at low rates are trapped in them, so they will continue to suffer in quality of life, and the economy will continue to suffer sub-optimal output as they try to adapt to work in captivity.
- 0zemp2c 3y agothis is (no joke) why The Fed wants to engineer a recession job losses will trigger home sales by necessity, and the great mass of people with 3% mortgages will be unwedged by force same thing happened after 2008...the recession pushed people out of the best mortgages they ever had
- JumpCrisscross 3y ago> this is (no joke) why The Fed wants to engineer a recession No it doesn’t. The Fed wants home values to go down. That can occur without job losses. (Which even now, largely aren’t occurring outside tech.)
- 0zemp2c 3y agoconnect the dots...and the people holding up the jobs numbers (Target, Costco, Chiptole) don't own homes, even in Kentucky
- tacticalturtle 3y agoWhile I’m sure it’s less than ideal, I would not describe the temporary inability to swap out a valuable asset for an equivalently valued asset as a tragedy.