A Hot Housing Market Is a Financial Crisis Risk
The longer prices defy the Fed, the harder the Fed might try to break them.
The US housing market is either the car at the end of “Thelma and Louise” or “Chitty Chitty Bang Bang” — soaring one last time before (spoiler alert) crashing into a ravine or defying the laws of physics and flying forever.
The Fed might well feel inclined to keep squeezing the market until it breaks. Those of us who were sentient in 2008 know how that can go.
The banking system is better prepared for such an event than it was 14 years ago, but the new ecosystem of non-bank lenders springing up in the wake of the crisis may not be.
Better hope this thing has airbags.
Mark Gongloff Bloomberg 29 juni 2022
Commercial property investors - shadow banking sector
https://englundmacro.blogspot.com/2020/08/concerns-mount-over-reckless-2008-style.html
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