Reply to Is it a good time to buy now?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Buying a house now would be like buying a house right before a real estate crash.

With mortgage rates so high, home prices have to drop but that hasn’t happened yet.[/quote]

+1 grab your popcorn and watch the real estate market crash.  Sustaining these high rates makes it just a matter of time.[/quote]
Why are rates high?  To combat inflation. Housing prices will remain stagnant or increase either due to higher inflation or the lower rates that accompany lower inflation.

There won’t be a real estate crash because [b]the Fed will lower rates before that happens[/b].  The Fed wants to slow the economy, not crash it, and they will lower rates to keep it afloat.[/quote]
And if they can't or won't?[/quote]

Powell has already said he has "tools" to deal with a recession. "Tools" is code for rates cuts. [/quote]
Powell also said the inflation is [b]transitory[/b].

Still believe him and/or his tools?[/quote]

They have already figured out they can print as much money as they want [b]as long as they are the worlds top currency[/b]. They started printing (QE) in ‘08 and have not stopped regardless of what they say. It’s going to be fine, it can only get better [/quote]
True, but that's already started to fall apart. Hence, the current rates and the bond market getting hammered (breaking 40 year trendlines).

Britton Woods was 1971 (getting off the gold standard) and the bond market took off. Fast forward ~40 years, and the Fed is cornered. The CAN'T let interest rates rise too much into positive real rate territory, and they CAN'T print money anymore (the bond market's broken now).

And the BRICS have already started trading in non-USD currencies, putting the Petro-Dollar into jeopardy.

Do you guys not see this or willful ignorance?

[/quote]

We literally can't sustain paying interest at these rates or higher for too long. It's a debt spiral. This is exactly why we end up like Japan- a massive amount of debt with yield curve control. Fed as the last resort buyer. [/quote]
Yeah, and the Japanese economy and people have been screwed for almost two decades.[/quote]

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