Mind Pump: Raw Fitness Truth 1657: Why the Economy Won’t Crash With Peter Linneman
Oct 7, 2021
In this conversation, economist Peter Linneman shares his expertise on current economic trends. He reveals why inflation might not be as alarming as it seems and breaks down the complexities behind supply chain shortages and the soaring housing market. He discusses the best ways to invest in real estate right now and suggests regions poised for growth. Linneman also critiques the Federal Reserve's accuracy in predicting interest rates, emphasizing the importance of understanding personal enjoyment in property investments.
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Inflation Context
- Current inflation is partly a rebound from an anomalous 2020.
- Prices are rising due to factors like increased demand and supply chain disruptions.
Used Car Market
- Rental car companies sold off their fleets in 2020 due to the pandemic, causing used car prices to plummet.
- Now, they have no cars to sell, which contributes to a surge in used car prices.
Housing Market Fundamentals
- Housing market increases are driven by fundamental undersupply, not just monetary policy.
- NIMBYism contributes to this undersupply by restricting new construction.