A 2% mortgage = -3% inflation. AKA deflation. Now that means everythign including rents will ahve to drop 3% YOY.
Printing notes causes inflation, so I dont see how adding 1.2 trillion = deflation.
Inflation has been artificially kept low due to china and other factors. House prices have been artifically pushed up due to low interest, high demand for bonds also from china and wild speculation and funky loans.
The trend is towards a reversal to normal. 10-12% interest rates, 5-6% inflation a fall in house prices and a rise in rents. In 10 years we’ll be balanced again and probably house prices of today will be back in nominal numbers.
Cool.
Cow_tipping.
