this post was submitted on 24 Jul 2023
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Economics

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Who Is Winning the Inflation Debate? (jwmason.org)
submitted 1 year ago by [email protected] to c/[email protected]
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[โ€“] [email protected] 3 points 1 year ago* (last edited 1 year ago) (1 children)

Nice article. I would love to see a more aggressive reduction in mortgage backed securities on the fed balance sheet as a targeted inflation measure to address the housing market.

[โ€“] [email protected] 2 points 1 year ago

I'm wishing for a total collapse comparable to 2008. I wasn't in a position to take advantage back then. Now I am. Such a correction might be the only way I could ever afford a house, at least anywhere near people I want to live near.

Problem is, that probably won't happen. Last time values were propped up by subpar borrowers who couldn't pay their mortgages. This time they're propped up by corporations and wealthy foreigners getting into the rental business. I wonder how long values have to be significantly above rents before they start cutting their losses.