Uh, whaddayathink Greenspan has been doing since he bacame FRB chairman? Do you think 2% overnight rates might have had something to do with the last few years' run up in real-estate prices? Don't you think Bernanke understands that? Why did he start raising rates pretty ferociously? How is Bernanke going to further pump up the market - pay people to take out loans? Do you think the value of my house in DC really trippled in 5 years to where three senior federal bureaucracts could not pay the mortgage? I don't. Why don't I cash out? If I were a speculator I would, but I live here because I have a job.
If your house in DC tripled then it has also dropped 20% in the last year (give or take). The bureaucrat salaries will get increased a bit faster and will catch up to those prices in at most 10 years. But real estate could increase even more if the Fed starts to see too much of drop (impacting the economy). We are stuck in inflation mode whether we like it or not, and right now the Fed likes it.