I think we were all quite clued in how effed up QE 1, 2, 3, 4, etc. is.
The underlying problem is that the federal government needs cheap interest rates because it is so indebted.
When I was young, houses were financed by saving and loan associations.
The traditional English ‘Building Society’ model was even better.
People would open up an account and deposit money. After a few years of regular, substantial deposits, the ‘Building Society” would consider granting you a mortgage.
This is a rather simpleminded solution to a complex problem. Audit the Fed and get rid of it. Build refineries and power plants. Get rid of oppressive government regulations. Drill baby drill. It will not solve all the problems but it will put the people back in charge and give them jobs for their right of pursuit of happiness.
In the old days, housing finance was local.
Local housing finance meant that there was a limited amount of financial fuel for housing price increases.
In 1975 I bought a new three bedroom home (27K) in Tacoma, WA with a zero down FHA loan - you just paid closing costs of around $800. However, the interest rate was 9.25%. A few years later, home loan rates were as high as 12% and up.
Broken because of government (Congress mainly). Ruled by greedy, selfish, incompetent and ignorant politicians who care more about perks, pleasure and power more than they do about America.
The problem is the amoral "culture" that's gaming "credit" into irrevocable systemic corruption.
HA!
I was thinking of exactly this when I responded to your Hanjin post.
Our present monetary system is the absolute foundation of the progressive-left state. Cheap/free Federal Reserve money for government to spend on #BLM, public-sector everything, refugees, procurement of all kinds, ... which creates its own interest groups. Do this for several decades and you have a leftist nanny-state leviathan
Cheap/free money for huge banks (who get bailed out by Fed.gov and the Fed) and corporations as well. Its why big business is now in bed with progressive ideology.
Yup. Un-equal weights and measures are against the instruction of YHVH. It has, and is destroying USA. Money creation from thin air for some and others supposedly owe them all that...
A loan is a liability, not capital.
mortgage rates generally aren’t tied to the prime.
credit is more easy than cheap.