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[quote=Anonymous][quote=Anonymous]This entire thread is a perfect depiction of the fear, palpitation, and worry over home prices.

Occam's Razor:

[b]"If you have two theories that both explain the observed facts, then use the simplest until more evidence comes along".

"The simplest explanation for some phenomenon is more likely to be accurate than more complicated explanations".

"If you have two equally likely solutions to a problem, choose the simplest".

"The explanation requiring the fewest assumptions is most likely to be correct".[/b]

The simplest explanation is, house prices exploded upwards because of low interest rates. And to a lesser degree, the PPP crap, eviction moratoriums, people didn't pay rent for years, eduction loan moratorium, and the list goes on. Mistakes (or not!) were made. These actions have consequences.

Now, all of this free and cheap money is gone. I've said this many many times before. Cost of money is cost money. It fell to the lowest level it could, and there was nowhere to go but up. People who realized this THEN, prepared for it. People who expected this party to go on were oblivious to it, either by design or ignorance.

The chickens are coming home to roost. Cost of money has gone up. The most rapid rise in the last ~50 years. That has consequences. Right now, CASH is king. Yeah, yeah, inflation ...that theory won't hold water for too long. Our country cannot survive this kind of inflation, even a tiny bit. It'll fall apart. The slow frog boiling syndrome of ~2% inflation is the MOST our country can handle. And even then, when the cost of money was cheaper for the last decade, inflation DIDN'T go up. Ever thought why?

The Fed knows this. Their credibility and the future of the United States is on the line. They will not stop, at all, in raising the cost of money till inflation comes down. Measurably and on the streets. That has consequences. There will be pain, things will break, companies will go bust, govts WILL have to cut spending. There are no other choices.

The party has ended, we're dealing with the hangover now, and will be, for some time.[/quote]

Government excessive regulations  constrain supply.

Government massive deficit spending is huge demand with no corresponding production.

Government staple of distribution of unearned dollars to unproductive consumers explodes demand with no corresponding production.

Money printer goes brrrr… and 12 years of socialist zero percent rates.

The swamp is not smart and has itself in a corner about to be blamed for a disaster. That’s why it’s provoking WW3 to escape humiliation while preparing its bunkers.

[/quote]

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