US Fed executes monetary policy, Congress executes fiscal policy. They cant cross over into each others territory, but Powell is on record since 2012 as stating the USA is on "an unsustainable fiscal path". The fed has done the wrong thing, like all central banks, by providing excessive QE over the last decade, and he knows it.
Thats some serious multiples. When I bought my first house decades ago, I managed to do it on an income multiple of 3 - ie the house cost 3 years oh my gross income. I ten bagged when I sold that house 24 years later.
Centuries of data from The Netherlands on house prices show it is correlated to the CPI. The current elevated house prices are a reflection of our increasing CPI, which is not being matched by wages., and giving rise to a lowered standards of living. Its just a question now of when the breaking point comes for the reversion to the mean to occur. Thats why crashes are necessary.
Stage 1 - banks tightening lending conditions. Check.
Stage 2 Bankruptcies?
Stage 3 Unemployment?
Let me know whent he SHTF.
Apologies to C3PO, or R2D2, or whatever his name is for the downramping.
(20min delay)