“However, interest rates won’t go up unless we are in an inflationary environment. In an inflationary environment, salaries will increase too so that will put upward pressure again on home prices.”
Oh really??? Salaries will go up in an inflationary environment? How about an environment where your job is in constant danger of outsourcing and downsizing because the corporation cannot predict it’s future costs adequately?
Repeat after me…there will be no wage inflation. Why? Because Bernanke and the Fed will not allow it to happen.
Get that out of your head right now because is completely wrong.
