Mark Hanson on the housing market:
”The only difference between leverage in finance and cheap and easy credit and liquidity in bubble 1.0 and 2.0 is that Wall St investors and banks quietly pushed effective
rates to the 2’s back then and the Fed took over the job, overtly, this time around.”
and
“If 2006 was a known bubble with housing prices at “X”, affordability never better, easy availability of credit, unemployment in the 4%’s, total workforce at record highs, and growing wages, then what do you call today with house prices at X+ 5% to 20%, worse affordability and credit, higher unemployment, weakening total workforce, and shrinking wages? Whatever you call it, it’s a greater thing than “X”.”
