I think people do not grasp the impact of this much money being cut off and it's wonderful.
It was said that in the 1980s the billions of money made from cocaine imports built all the major skyscrapers in Miami and many other cities.
I would expect hundreds of billions of dollars being cut off from a specific group of insider lefties to affect many areas that they frequent and spend money and many housing areas that they live in etc in a similar fashion.
The truth is their activities have been artificially inflated by hundreds of billions of dollars a year from what looks like at least a decade or more.
The housing market is never going to truly normalize while banks are allowed to give out exorbitant loans which create artificial demand. It's the same thing for college. There's pretty much 0 demand for $40k/yr education. The only reason it exists is because of predatory loans.
If you've ever seen one of those videos or graphics about prices of things like tuition, homes, cars, etc. over the past hundred years or so after adjusting for inflation, you will realize that all of the "necessaries" (the three things I just mentioned) are way higher than other categories. Groceries may be up 50% after adjusting for inflation, but homes are up about 450%, tuition is up over 1,000%, cars are up about 200-300%. People aren't allowed to exist outside of the debt-slave system. Unless you don't want to be a homeowner.
Basically, if the FED didn't exist, and interest rates actually reflected the true economic time-value of money in real time, the prices of everything would normalize. Way fewer people would be willing to take out loans if the interest rates on them were 15-20%. This would lead to a drop in demand, and a corresponding drop in prices, and a corresponding drop in consumer debt, and a corresponding increase in kvetching.
LawFag 6 points 12 hours ago
The housing market is never going to truly normalize while banks are allowed to give out exorbitant loans which create artificial demand. It's the same thing for college. There's pretty much 0 demand for $40k/yr education. The only reason it exists is because of predatory loans.
If you've ever seen one of those videos or graphics about prices of things like tuition, homes, cars, etc. over the past hundred years or so after adjusting for inflation, you will realize that all of the "necessaries" (the three things I just mentioned) are way higher than other categories. Groceries may be up 50% after adjusting for inflation, but homes are up about 450%, tuition is up over 1,000%, cars are up about 200-300%. People aren't allowed to exist outside of the debt-slave system. Unless you don't want to be a homeowner.
Basically, if the FED didn't exist, and interest rates actually reflected the true economic time-value of money in real time, the prices of everything would normalize. Way fewer people would be willing to take out loans if the interest rates on them were 15-20%. This would lead to a drop in demand, and a corresponding drop in prices, and a corresponding drop in consumer debt, and a corresponding increase in kvetching.