[quote=FormerSanDiegan][quote=The-Shoveler]OK I will take a stab at it knowing full well I am about to be flamed.
If they raise interest rates without wage inflation then the housing market will crash followed by state and city bankruptcies one after the other because their main source of revenue is property tax.
This will cause a lot of other economic issue etc…
A lot of people I think fail to put two and two together and think housing crash existed in some sort of vacuum.[/quote]
I don;t follow. How would this scenario lead to 7-10% inflation. Sounds deflationary to me[/quote]
Yes absolutely it would be deflationary if the Fed increases rates WITHOUT FIRST there being wage inflation (7-10%),
That’s why I think it will not be any time soon.
Or if they do then they will be FORCED to reverse course very quickly.
