Thursday Thoughts – Fed Blowing Housing Bubble 2.0?

Summary Home prices have crossed over our 2007 bubble highs. High prices and higher interest rates are the perfect recipe for disaster. China is showing signs of slowing – also shades of 2007/8. Here we go again. As you can see from Naked Capitalism’s Case-Shiller Chart, those who forget the mistakes of the past are doomed to repeat them and we just passed the last "out of control" housing peak. As the Fed’s Neel Kashkari said about housing prices: "It is really hard to spot bubbles with any confidence before they burst. Everyone can recognize a bubble after it bursts, and then many people convince themselves that they saw it… Read More

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