Raising interest rates too quickly is like this....
When you run off the cliff ...you only realise too late.
![[Image: ufYlbq1.jpg]](https://i.imgur.com/ufYlbq1.jpg)
The Fed always use stale data like CPI and PPI that lag for months that is how they killed the economy in 31 out of 32 rate hike cycle.
Modern day we use real time data. Last CPI report ever show housing cost increase when in fact it has collapsed.
https://www.businesstimes.com.sg/propert...ggest-2008
Rate of inflation Is proportional to rate of M2 increase.
The Fed cause jnflation by printing money during the pandemic ....1yr later we kena inflation.
The Fed shrinks money supply.....we will be hit by deflation after a time lag.
![[Image: JouxIqG.jpg]](https://i.imgur.com/JouxIqG.jpg)
I only remember During 2008 subprime reset for ah joe and Mary globally were around $900B USD.
To be sure, home prices are not collapsing. In December 2022, the total value of US houses was still 6.5 per cent higher than it was a year earlier.
Please share info source of property value loss of 2.3T
(23-02-2023, 04:40 PM)sgbuffett Wrote: [ -> ]Raising interest rates too quickly is like this....
When you run off the cliff ...you only realise too late.
The Fed always use stale data like CPI and PPI that lag for months that is how they killed the economy in 31 out of 32 rate hike cycle.
Modern day we use real time data. Last CPI report ever show housing cost increase when in fact it has collapsed.
https://www.businesstimes.com.sg/propert...ggest-2008
Chen Zhao, economics research lead at Redfin, said: “The housing market has shed some of its value, but most homeowners will still reap big rewards from the pandemic housing boom.” She added that the total value of homes remained about US$13 trillion higher than in February 2020.
To be sure, home prices are not collapsing. In December 2022, the total value of US houses was still 6.5 per cent higher than it was a year earlier.