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]When have housing prices ever dropped 30-40%?  Especially in the northeast/coastal areas for single family homes?

And whatever drops there were, how long did they remain?[/quote]

When have housing prices ever increased 30-40% in two years?

When has the Fed ever directly injected trillions of dollars into the economy because a global pandemic ground virtually all economically productivity to a halt?[/quote]

If you want to have any credibility in a discussion, you will answer questions instead of strawman arguments and ignorance of the premise.

I’ll show you how and answer yours:

How fast a market has risen has nothing to do with how fast, how far, or why it might fall.  People have been saying the same thing about many other markets for years.  one times they are right, like with beanie babies and baseball cards.  Sometimes they are wrong, like with the stock market.  There is no direct correlation so the insinuation of your question is proved fallacious.

As for your second question:  maybe you’ve heard of other massive stimulus packages, like the New Deal and ARRA, for instance? Those did not precede a crash the real estate market or any other market.

So you fail.

Now answer the questions asked please?

When have housing prices ever dropped 30-40%?  Especially in the northeast/coastal areas for single family homes?

And whatever drops there were, how long did they remain?
[/quote]

Lol, you were the one asking a question that insinuated an answer. I was pointing out that we are in uncharted territory. Except that, to answer your question, the only other time prices went up so quickly and to such high levels of unaffordability was 2004-2006 and we all know what happened then. Take at look at NJ. Prices peaked in 2006 and didn’t reach that level until 2021. That’ doesn’t even account for inflation.

https://fred.stlouisfed.org/series/NJSTHPI

As for stimulus, those examples you cited were instituted in times of great depressions/recessions and did NOT work to juice the economy. The markets were already crashed. Everyone, literally even the Fed, sees now that this stimulus was too much and went on for too long. Which is why they are now taking such a heavy handed approach.[/quote]

Thanks, I believe in facts and data.

So according to the data you posted, when asked "When have housing prices ever dropped 30-40%?" the data would indicate "Never". (22% being much less than 30-40%)

The national data did surprise me, I admit, that the recovery time was 9 years, and 6 to the pre-bubble values.  It was not that long where I live.  So you get partial credit for that one.
[/quote]

If you plan to continue engaging in discussions on the internet, I’d suggest you rethink the pedantic shtick. It’s really off putting.[/quote]

Sorry, sometimes pedantic shtick just works perfectly, and this was one of them.  Don't make weak arguments and it won't work, right?  So it's on you.[/quote]

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