Reply to Federal Reserve: signs abound that housing market is entering bubble territory

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]A lotta speculators, investors, people who bought at peak FOMO, and RE agents are in denial ITT.  The Federal Reserve must be wrong when they use the B word.  Prices on assets only ever go up, amirite?[/quote]

Clickbait gets the clicks, amirite?

What specifically do you think is going to happen to “pop” this “bubble”? 
[/quote]

Not the PP, but [b]who knows.  Could be anything. We won’t know until we know.  [/b]

I’m more worried that we have an “all asset” bubble that will take stocks down too.  The minor stock market correction earlier this year didn’t affect things much.[/quote]

So…irrational fears. [/quote]

Rapidly rising interest rates, a threat of an impending recession, 40 year highs of inflation, an gross over speculation in the housing market at not 'irrational' fears.[/quote]

But even if all of those thing happen how would that lead to anything more than a cooldown?

People need a place to live. Housing is not purely an investment that can lose all value. Unless massive amounts of people are foreclosing we won’t see another bubble.

[/quote]

Did you not even read the Fed's article? Over 30% of hikes are being bought by investors. These aren't people or entities that need a place to live, they're treating housing like it is the stock market. If there's any sign of a recession/economic slowdown or rates rise so high that people can no longer to afford to borrow to buy stupidly jacked up prices for homes that are flip jobs done by speculators/investors then investors will start panicking and try to unload their bags to exit before everyone else. It will lead to a cascading effect for a sell off, plus the 30% of investors will simply buy less.[/quote]

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