The plunge in September home sales in California may be a hint of things to come elsewhere and should have everyone concerned.
Before the warning becomes a crisis though, maybe, just maybe, some good will come from it.
We can hope that after decades of being on a roller coaster of economic booms and busts, experiencing crisis after crisis, and witnessing an unending spiral of rising prices, this latest warning of a housing market crisis may prompt more people to examine the Fed’s role and policies.
Anything that would result in the Fed being forced to be more transparent in their operations and more accountable for their policies would be welcome.
During the Obama era, the Federal Reserve pushed interest rates all the way to the floor for years, and this caused “Housing Bubble 2” to become even larger than the original housing bubble.
Now the Federal Reserve has been aggressively raising interest rates, and this is now busting the bubble that they created in the first place.