When everyone is wrong!
It is very hard for markets to find their way when those in power and in control are just so WRONG all the time. When the former FED Chair and now Treasury Secretary Janet Yellen, someone who should know things about economic issues, absolutely gets inflation so incredibly wrong that she states that the only cure is for the government to spend trillions more dollars, even well after just about everyone else had given up the whole “transitory” nonsense. It gives people pause to think about how she would be so far off the reality we are experiencing now.
When the current FED Chair Jerome Powell, the original author of the whole, “inflation is transitory” myth, tries to work himself out of the corner he painted himself into, by slow rolling raising interest rates and pushing congress to abandon the thoughts of continued spending trillions more dollars; it just makes you try and imagine what do they really know, or worse yet, could they really NOT have known?
It gets no better with housing information. There are those who profit from making claims that are not supported by anything other than theory. Some would be happy to say anything negative they could find and put a huge headline on it just for the value of the “clicks” it attracts, not the facts it contains.
When the markets can’t find someone to believe in or trust, it can be painful. Just look at your 401k or your bitcoin wallet! Inflation has no plan. Supply chain issues continue and let’s not talk gas prices! The boarder remains open, nobody knows what to believe about COVID, monkey pox, or anything coming from the CDC. The worst of it is that NOBODY really believes that Joe Biden has any real plans to fix anything, and neither do any of his staff or cabinet.
We must focus on our own local reality for now. What is happening in our individual markets? What are rents doing? What are home prices doing? What are payments looking like for homes our clients really want to buy? What kinds of programs are we likely to use to solve some of these problems? When everyone at the top is wrong, it is up to the individual to sort out everything on a hyper local basis and apply our knowledge to provide solutions for our clients and referral partners.
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