Re:Banks, QE, and Money-Printing
by alexmingoia on Tuesday November 03, 2020 @08:19AM
(#24979350)
You’re not missing anything. Housing is included in CPI as rent. Housing purchase prices aren’t included because they represent both current and future housing consumption (people don’t consume a house within a year).
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Don't rent and housing purchase prices follow each other, roughly ?
Nope. They can go inverse when, say, an economy collapses and everyone is forced out of their homes as they go underwater on their mortgages and but they still need somewhere to live. Kind of like 2008/09
> an economy collapses and everyone is forced out of their homes as they go underwater on their mortgages
People are not forced out of their homes when their mortgages go underwater, they're forced out when they can't afford to pay the mortgage (underwater or not).
or if the bank calls in the note because the asset/collateral becomes devalued.