The only glint on the cloud is that wages have risen for most so anyone saying ‘prices will go back to 2000
Most people talk about 2000 prices in the real sense, not the nominal sense. Since 2000 the wages of all the top 1% have at best been flat versus inflation. That means there really is no fundamental reason that prices should be any higher in real terms over the year 2000 prices. What drove up prices was the easy availability of lending that led to record highs for homeownership. People also tend to spend other people’s money much differently than they’d spend their own.
Inflation only helps debt if we get the corresponding wage inflation as well. Without wage inflation the debt becomes that more toxic as people are squeezed even tighter by increased costs.
