“It’s counterproductive on every level,” said Lou Crandall, chief economist at Wrightson ICAP. “Encouraging more borrowing like this is just not necessary.”
Mohamed El-Erian, chief economic adviser at Allianz, the parent company of asset management giant PIMCO, says the central bank is making things worse by continuing its purchases. Fed Chair Jerome Powell was pressed earlier this month by both Democrats and Republicans on why the central bank continues to snap up $40 billion in mortgage-backed securities each month even as housing prices soar, suggesting that market is in no need of support.
“Nonetheless, housing prices are moving up and of course that makes it more difficult for entry-level buyers to get into the housing market,” he said.
inflation?
Why? Many reasons...Because there are too many derivatives... so if the stock market crashes many are doomed. The govt has too much debt so they are inflating it away. They can’t raise interest rates or there will be a sovereign debt crisis. DYOR so you don’t have to ask “why?”
Because it is not reaching to us down here....