...QE has been going on for nearly five years now. The - TopicsExpress



          

...QE has been going on for nearly five years now. The “market” is fully manipulated. Looking back at the last half decade of data, we find that current Fed policy has been a boon for investors and has priced out many American households. Today, you now have markets once again becoming unaffordable primarily because of market manipulation. This is exactly what is going on. The market was aiming for higher rates to account for added risk yet the Fed wanted to assist member banks in offloading millions of underwater properties. Slowly, this plan has worked like a charm. So while US home prices are rising strongly because of this intervention and massive investor buying US household incomes are back to where they were a generation ago. For the millions of new renter households, rents are also up but on a stagnant stream of income, a larger portion of disposable income goes into housing. Not exactly the best use of money.
Posted on: Fri, 15 Nov 2013 11:51:03 +0000

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