”Down Markets and Dumb Economic Myths” by John Tamny

An interesting piece I found that shows the correlation between inflated housing prices like we had in the 2000’s and a weak dollar among other things.

Highlights –

“The logic with housing is completely backwards. The economy is not sagging because home prices have moderated, but it wilts because a weak, inflationary dollar this decade caused a rush into the asset class to begin with, and prices rose. While the average American does not follow the dollar’s movements versus the objective benchmark that is gold with any regularity, a majority of Americans do follow housing prices.”

“This is why housing booms that eclipse stock-market returns always end in tears. Think Nixon’s presidency, and similarly think Carter’s presidency when housing was the top asset class. The Bush administration merely followed the weak dollar policies of Nixon and Carter, and fomented another property rally. “



Post a Comment

Comments that contain cursing, threats, David Plouffe trolls, circular reasoning, incendiary language, or general leftist hate and moonbattery may be deleted by the Left Coast Rebel….

Related Posts with Thumbnails