3min chapter

The Compound and Friends cover image

12 Things Everyone Got Wrong About Inflation

The Compound and Friends

CHAPTER

The Pandemic and the Low Mortgage

There's a shortage of homes as a builder reaction to the financial crisis in the 2000s. 61% of outstanding mortgages have an interest rate of 4% or less. The Fed is driving owners equivalent rent higher, which I think ties into that. You said given the shortage of housing, the rapid increase in rates has perversely caused more, not less inflation,. But how is that distorting CPI, I guess, is the question asked?

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