Is There a Need for the Fed to Create an Even Bigger Drawdown in the Housing Market?

It's typical late cycle behavior to assume that Sharp tightening of financial conditions we have seen last year will not result in a material growth as low down. Every time we have the discussion where this time is going to be different Something structural has changed in the economy The economy can end all five percent the risk free rates all of a sudden. So Are we sure the economy has changed in a structural way so that the US says almost 300% total economy debt to GDP private plus public sector debt and We can afford 5% risk free rate, which means 7% of mortgage rates and 7% corporate borrowing rates I don't know.

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