Aaaand it's the "THE SKY IS FALLING" post of the week, yet again.......
I get it, fancy people with grand titles speaking of all there superior command of the numbers and math and what not, that they have there crystal ball upon "The Hill" and we simple-simple people just need to turn off our brains and follow.
Let me ask you this, just how often in the last years has government correctly projected really anything? The 08 collapse, how well did these persons and researchers see that coming, which by the way MANY did see because it WAS inevitable, it was a ticking time-bomb, fully created and fully anticipated, and many did and made fortunes from it.
Notice what they are saying, to stop hyper inflation. How about any statements on how they let hyperinflation even become a risk int he first place? Any mention on that? Was the Crystal Ball at the cleaners that week?
Here is the simple crayola version of things:
We are in a serious housing SHORTAGE. Builders are averaging a mark around 10% profit mark. Your calling 20%+ drop, HOW???? Sooooo all new unit building stops, for another decade? Or maybe you'd like to tell builders where they are wasting a 20% profit margin? Or going to LOWER labor costs? Which means lowering not just wages but taxes on labor also? Maybe lowering cost of goods 30%?
I have zero doubt taxes will go UP!. I have 0 doubt cost of goods will go up! How, because it's what's ACTUALLY being done, here, now, the ACTUAL actions. They can call it whatever, there words mean nothing, ONLY actions matter. And those actions are many in our political influence LIKE the higher taxes and higher costs, and they just can't get off the throne of printing and distributing more, THATS INFLATION, our very government ethos today is to INFLATE there way out of inflation. Check out the history on that approach and let me know how many times that resulted in lower prices for high demand shortage supply items? It rhymes with hero.
There are 3 fundamental human NEEDS, and people will seek to fulfill these needs REQUARDLESS of all other things, including economics, war, any of it. Those are Water, Food and SHELTER. People will not care how expensive things are it will only adjust HOW they gain shelter.
So, for a 20% reduction in housing costs, it's gotta come from somewhere, so where? Yapping on some Fed adjustment does NOT reduce the cost of construction 30%, it does not make 40k homes grow out of the ground of make those turning 21 evaporate or no longer need a shelter.
