Real Estate Craziness is just a symptom

Unlike 2008 where BS mortgages were given to anyone with a pulse, this time the real estate craziness is just a symptom of a greater problem. I write about El Segundo because I live here and want to own a home and raise my kids here. I would venture that in most major metropolitan cities anyone could start their own blog about local real estate craziness. It’s a symptom of a global crisis created by the Federal Reserve printing money for eight years.

Nashville, Portland, SF, Dallas, London, Sydney……

Eight year at a zero % fed funds rate has created many monsters. This doesn’t unwind well.

united-states-interest-rate2x

 

This article shows another city in another country with the exact same problem.

http://www.euronews.com/2017/04/08/the-nightmare-of-barcelonas-rental-market

This doesn’t end well.

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