What part of 6% mortgage and 9% auto loans screams “great economy” again?
This doesn’t matter and it’s actually a good thing rates are going back up. Rates are still lower than they have been. The real issue is greed and pretending like it’s inflation. Rent has gone up. Food prices have gone up. People are constantly laid off and there is no job stability. Employers now have the upper hand. All of this and wages have not increased.
Reaganomics is garbage and doesn’t work. Taxes on the rich are at an all time low. The economy is doing well, but the wealth is not being distributed in the way that it should.
I mean neither of those is a problem, the problem is that prices aren’t adjusting to match.
But housing won’t go down because it’s become an investment, and cars won’t go down because during covid manufacturers learned only selling expensive models increases profit margins.
If anything, high rates are good. They encourage saving and curb consumerism, which are both things Americans at large can use help with.
Housing has always been an investment hasn’t it? I guess you are talking about companies buying homes. I feel like that shouldn’t be allowed.
Tesla prices are plummeting though, so I suspect car prices will fall all over now.
Tesla is getting hit hard and fast. I watch car news and it’s still mostly manufacturers announcing new model years that are significantly more expensive than before.
Housing really became an investment in the late 80s to 90s, that’s part of what drove the McMansion boom. Not for corporations but individuals, who are actually the largest driver of prices not adjusting. Don’t get me wrong, corporations are buying an increasingly large chuck and this will be a problem, but right now it’s not the big one. In my area there are an absurd number of houses for sale compared to normal. All of them are overpriced, almost none of them are selling, and yet they increase the list price every month like clockwork. These are individuals, not corporations. Until these individuals accept that the house they bought for $50k isn’t worth $1.5m, prices will not go down.
