Maybe I’m missing something, but I don’t see WAGE inflation happening anytime soon. Let alone the end to increasing unemployment.
The powers in charge aren’t entirely clueless. They know all too well what would happen if mortgage rates jumped sharply in the next few years. There is going to be a strong push to keep low rates, IMHO over the next several years. Either that or a program put in place to let those underwater refinance.
Now wage inflation out a few years, say in 2014+ might be a whole other story.
