The unintended consequences of the Fed’s unprecedented interventions will rip the heart and lungs out of the housing market
The housing “recovery” since 2010 can be summarized in four phrases: diminishing returns, unprecedented central state/bank intervention, unintended consequences, end-game. Three charts from our friends at Market Daily Briefing and one of the Case-Shiller Home Price Index tell the story.
Let’s start with what we all know: declining mortgage rates, mortgage securitization, poorly regulated/unregulated no-document, no-down mortgages, easy credit policies of the Federal Reserve and massive Federal subsidies of housing and mortgages fueled an unprecedented housing bubble from 2001 to 2007.
via charles hugh smith-The Housing “Recovery” in Four Charts.
