The Fed scrapes Scylla after careening into Charybdis
by New Deal democrat
The Fed scrapes Scylla after careening into Charybdis
In the past several years, I have described the Fed as trying to steer in between the Scylla of a yield curve inversion and the Charybdis of higher rates wounding the housing market.Recently several trends have reversed. This offers some relief to housing, but more risks to the economy as a whole. This post is Up at Seeking Alpha.
By the way, several times yesterday and today, the yield curve inversion has spread to the one year vs. five year yield.
Higher rates don’t wound the housing market, higher prices do, above debt servicing. Higher rates give banks more ability to create money. You need to be nose grabbed and pulled. You don’t get it nor how the system works. If you can’t charge more interest, the system is failing, pure and simple.