Fed Debates Pricking the U.S. Housing ‘Bubble’
I could nearly have named this post “keep away Federal Reserve”, because it looks as though rates are on the way up, and once they go up enough the bubble will burst; history shows this to be the case. It won’t happen strictly everywhere, but it will happen in most places, particularly those with the most over-inflated prices to start with.
NY Times: If the housing market has become a bubble, as increasing numbers of economists warn, would the Federal Reserve try to deflate it?
The idea runs counter to a deep-seated view at the central bank, which refused to puncture the stock market bubble of the 1990’s and continues to view its main job as preventing inflation rather than influencing the prices of stocks, bonds or real estate.
