Posted on 12/01/2023 9:58:42 AM PST by Kaiser8408a
The US middle class has the Down Payment Blues! Or a case of housing being simply unaffordable.
Median home prices are up a whopping 20% under Biden and his signature Bidenomics, growing the economy from the inside-out (?) instead of top-down. Excuse me Joe, Bidenomics is pure top-down Soviet-style economic planning. Markets be damned! The end result? Housing is far more expensive under Biden as are down payments.
If we look at year-over-year (YoY), we can see the burst of Covid-related spending and M2 Money growth (green line) that surged in 2020/2021. And rising home prices followed shortly thereafter. But as M2 Money growth slows, median home price growth declined into negative growth. The only factor that is positive is real hourly compensation (red line). But that is barely above 0%.
If we look at The Fed’s balance sheet surge (much like a storm surge), you can see the 2020/2021 overreaction to Covid and the various government shutdowns (along with school shutdowns).
The problem is that The Fed is shrinking their balance sheet like Biden shuffles. Maybe The Fed is following Biden’s lead: slow walking, incoherent messaging. And with the Fed storm surge of 2020/2021, Case-Shiller national home price index is up 33.2% under Bidenomics. Good luck with that down payment if you are renting and want to become a homeowner.
After all, Biden (and his overlord Obama) are truly addicted to gov solutions. Which means they are doomed to fail, as most government policies do.
(Excerpt) Read more at confoundedinterest.net ...
So home prices are up less than wages over the last three years. This is scary stuff you’re coming up with you economic quack.
Oh, look at that, the Dow Jones is about to hit a record high.
Oh, look, bond yields have fallen 80 bp (10y) in the last 6 weeks.
thank you, ya beat me...
my favorite AC/DC
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