With the focus on international trade, currency wars, and retaliation from foreign Central Banks, there’s been relatively little chatter about the Fed’s Quantitative Easing (QE2) program and how it relates to the housing market. Maybe the housing industry doesn’t know, doesn’t care, or plain just doesn’t expect much anymore. Even earnest commentary like this avoids discussing the deeper structural problems.
So, I took the liberty of organizing a few thoughts in a short white paper – “Quantitative Easing & the Housing Market: It’s Not About the Money.” Monetary policy does not, and cannot, address the really, really big challenges we’re facing – declining homeownership rates, decreasing demand, and the paradox of thrift.
As always, comments and scathing remarks are welcome.