psychothumbsDeflation Never Happens, Except Right Now
people put off buying homes and other big purchases because they know it will be cheaper later
What absolute drivel. This myth was obviously formulated by some wealthy economist who had only ever worries about purchasing vacation homes.
People put off buying homes UNTIL THEY CAN AFFORD IT. How many people does the author think are currently in the streets or renting for years just so they can save a bit on their mortgage? Completely garbage.
LucidlethargyThis is a weird take… Interest rates are at absurd rates right now.
macrotrends.net/…/fed-funds-rate-historical-chart
Only compared to recent prior rates. The full picture is that rates are final normalizing after being held absurdity low.
Federal Funds Rate - 62 Year Historical Chart
Shows the daily level of the federal funds rate back to 1954. The fed funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight, on an uncollateralized basis. The Federal Open Market Committee (FOMC) meets eight times a year to determine the federal funds target rate.
Finally I can put money into the bank and it actually yields a return, but everyone wants to borrow money for free.