> We will have to reckon with the consequences of government economic meddling at some point.
Not necessarily, the Fed isn’t obligated to unwind its QE purchases. They may not even be willing to, see ‘taper tantrum’ and Oct-Dec 2018. We won’t see another bear market without another black swan.
House prices may come down when the moratorium is lifted, back to 2020 prices. There won’t be as much selling by landlords as you think, lots of them likely qualified for forbearance which makes non-payment of rent a virtual non-issue. It’ll take a 2.5-3% 10y yield to really push mortgage rates up enough to where it starts to affect house prices, or the Fed needs to stop buying MBSes, or both.
The Fed doesn't need to unwind its purchase to kill the dollar. All that needs to happen is the people lose trust in the dollar. There is nothing special about the dollar. It is worth just as much as any other national currency. Some people have already realized this. When the masses catch on it is already too late.
What percentage of landlords do you think are qualified for forbearance? It certainly isn't all of them. What percentage of landlords need to default before there is a crisis?
I wouldn't be looking at the Fed to change their practices. They believe they are in the right and can fix the economy with what they are doing.
Not necessarily, the Fed isn’t obligated to unwind its QE purchases. They may not even be willing to, see ‘taper tantrum’ and Oct-Dec 2018. We won’t see another bear market without another black swan.
House prices may come down when the moratorium is lifted, back to 2020 prices. There won’t be as much selling by landlords as you think, lots of them likely qualified for forbearance which makes non-payment of rent a virtual non-issue. It’ll take a 2.5-3% 10y yield to really push mortgage rates up enough to where it starts to affect house prices, or the Fed needs to stop buying MBSes, or both.