Housing Crisis,Housing Prices, Inflation and Fed PolicyFed does not response to housing prices soared 300 % in coastal ares of NY, California make affordability drop from 60 % to 40 %,and pushed oil, metals, commodities price soared 300 %, CPI inflation up 4.5 %, but Fed watched core inflation ( exclude food and energy) still below 2 % now it response to 20 % housing price correction by cutting rates, stimulated overheated equities, housing demand( which is normal supply demand relation)
Fed missing link between housing, equities price bubble and CPI inflation.
by maintaining stocks, housing
bubble growth, the trillion wealth gain it drown Fed , make it hard to manupulate like current China twin asset bubbles, will reach huge bubble bursts, with or without
central bank control, that
deep recession following will be horrible.
details can be found on
www.osawh.com/riskm.html
causes, onsset, recovery, early warning of global financial crisis, asset bubble crisis
