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The Housing Bubble isn’t a Bubble- it’s a Blister.

Livinglies's Weblog

The Housing Bubble isn’t a Bubble- it’s a Blister.

by K.K. MacKinstry

It’s going to hurt when it pops.

Low interest rates have reflated the housing bubble by enticing buyers to enter the market or buy bigger homes while rates are low, with the looming Fed threat that rates will rise quickly.

During May 2017 debt, auto loans, and the stock market hit new irrational highs indicating signs of trouble for the unsuspecting consumer.

Credit delinquencies from the consumer are a new sign of trouble as interest rates begin to head higher.   William McChesney Martin, the longest-serving Fed chairman in the Fed’s 100-year history has said that the Fed’s job is to take away the punch bowl just as the party gets going.”

It is well know that high valuations in both real estate and the stock market encourage risk and that result in a massive correction later on…

View original post 415 more words

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