Not GP, and this comment is copied from earlier in my history, but...

One example: the US central bank's (Fed) Quantitative Easing (QE). In my view, QE's inflation happened before QE started. A significant purpose of QE was to prop up the loans made before the financial crisis. The inflation happened with the creation of trillions of dollars of securitized sub-prime housing loans. Rather than allowing those loans to default, the Fed is acting as a buyer of last resort through QE MBS purchases [0]. Without the Fed, much less money would be available for housing loans, and their prices would return to historical ratios to income [1, 2]. [0] https://fred.stlouisfed.org/series/MBST

[1] https://archive.nytimes.com/www.nytimes.com/imagepages/2006/....

[2] Blue line in http://www.econ.yale.edu/~shiller/data/Fig3-1.xls

It's not a terribly elaborate solution, just a simple and good one: let's have the federal reserve stop promoting monetary policy that encourages reckless spending, easy money, expensive houses, and tons of plastic shit.

Some people present it as a solution to all the world's ills, which it is far from. But it's a good foundation for many solutions for many ills.

It still won’t matter in real terms. Real housing prices will still continue to rise, until the fundamental housing shortage is solved in places like the Bay Area.

It’s not really a solution so much as it is a bandaid. Sure, you could raise interest rates and nominal house prices will go down. But it doesn’t solve the problem of limited housing supply in places like the Bay Area.