A practice that came about in the 1930’s needs top be tried again to help boost the economy according to Roach. Roach suggests forgiveness of “excesses of mortgage , installment and revolving credit,” to help the deleveraging process.
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The whole market is locked up. You know a bubble when housing prices appreciated faster than average wages.
I would like to buy another home but it makes more sense to rent right now in CA when adding HOA, taxes, and high prices. There are so many vacant homes in the US (11m) and the fed owns more homes than any other entity.
They should lower prices to let the market clear, but the banks would take a hit to their balance sheets so they would rather market to model fantasy and sit on it. meanwhile there is no utility on all those empty homes.
@ Apocalypse,
The Fed should forgive all interest on debt…or forgive the debt all together.