so much of this discussion to me seems centered around the need to keep rates low in order for people to feel good about their rising house prices and to then spend their home equity by increasing debt fueled consumption in order to support the consumption sector
the end result of this in my opinion is for rates to spiral down to zero and stay there for twenty years
it seems that a little pain right now cant be the antidote to this fallacy, because we are addicted to the combination of sub 5% unemployment and simultaneous 5% property price appreciation year on year
is this economy just set up to cater to housing speculation and debt consumption?
