I speculated in May last year that the introduction of the taper concept was in large part due to what Jeremy Stein articulated in February 2013, namely the idea that certain “markets” were becoming overheated in the “reach for yield.” In essence, it amounted to an attempt to “talk down” assets, chief among them the raging price appreciation once again in housing. The inflation of home prices in 2012 and to that point in 2013 actually worked out to be at a faster pace, more importantly without interruption, than anything we saw during the main housing bubble in the middle of the last decade, so that certainly provides some solid context if indeed the FOMC discussions tended in that direction.
Intentions On Housing
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