Is there another "housing bubble"?
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Anonymous
Fed raised rates 17 times between 2004-2006. |
Anonymous
Does this economy reflect that economy? |
Anonymous
Per the one of the latest fed meetings - Janet Yellen claims the economy is doing well (as it was supposedly in 2004). Stock market is soaring and consumer confidence is high - maybe so but wages are stagnant and this high isnt based on revenues but corporate buybacks. Household debt is also the highest it has ever been with many taking out huge mortgages to compete in this market. Many loans are being underwritten far exceeding 3.5 hhi. Fed had to reflate the bubble one way or another otherwise the banks would lose. 2004 Fed recognized asset valuations were getting unstable. My guess is this time around it will be 1 drawback somewhere which has already started with car loans, CRE and credit. I think anything is possible. |
Anonymous
| Bump for those claiming we're in another bubble... just like we thought there was a bubble in 2015... |