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A comment on The Era of Very Low Inflation and Interest Rates May Be Near an End. Parent comment

Re:The Era of Very Low Inflation and Interest Rates May Be N... by toasterlovin on Thursday April 26, 2018 @05:12PM (#16935843)
Yeah, I guess I meant that house prices would crater. Obviously some people benefit from that and some don't.

My intuition is that it would also precipitate an economic downturn. Many households will see a drastic deterioration of their balance sheets, which should act as a damper on consumer spending. Which would, in theory, have 2nd order effects on the real estate market...

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Re:The Era of Very Low Inflation and Interest Rates May Be N... by kurthr on Thursday April 26, 2018 @07:15PM (#16936852)
People won't be able to borrow against their lost wealth either (or only at very high rates). Builders/Flippers will stop spending and so the construction trades will suffer a lot... ditto RE sales people and their 6% commissions. I don't think inflation would be high for long.
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