President Donald Trump said during a Cabinet meeting on Thursday that he wants to "drive housing prices up."
"Existing housing, people who own their homes, we're going to keep them wealthy. We're going to keep those prices up," Trump said.
Trump made his comments following Housing and Urban Development Secretary Scott Turner's update that home sales in December "rose sharply to their strongest pace in three years." According to the National Association of Realtors, home sales in December rose to "nearly" the highest in three years, but the increase was just 1.4% year over year. The association also said separately that pending home sales that same month had fallen 3% from a year ago.
"I don't want to drive housing prices down, I want to drive housing prices up for people who own their homes," Trump added.
The president also said he wants to bring interest rates down to make it easier to buy a home. After cutting rates at its last three meetings, the Federal Reserve announced Wednesday it would leave its benchmark rate between 3.5 and 3.75%.
Source: NewsHour
7 Comments
Sure go for it. Good luck making them affordable. That’s the hard part he avoided
Housing prices tripled here from Covid onwards, and he thinks that’s sustainable even as the employment pool is diminishing? He wants them to go higher still? He’s a genius obviously. smh
Lol. Every idiot who voted for this asshole thinking he’d bring down the cost of living should be kicking themselves for their delusional decision to back the worst president in US history
Make it easier to buy a home by reducing interest rates? Ok, but interest rates are only part of the mortgage equation. The rest of it is the **price of the home**.
This is capitalism without free markets. The reason house prices are so high now is because the Federal Reserve printed up $2 trillion to buy mortgages. Cheaper mortgages results in higher house prices.
https://fred.stlouisfed.org/series/WSHOMCB
And, we have all those nice investors, like Blackrock that bought all that real estate, and it would be a crying shame if they can’t unload these houses at a profit.
Meanwhile, the country assessor will swing by and hike your property tax because of the asset inflation affecting your house’s value.
These policies are the primary reason asset prices have risen, resulting in widening wealth inequality. Here’s the money they’ve printed up so far.
https://fred.stlouisfed.org/series/WALCL
The money filters through the economy, and winds up as capital gains in stock and real estate markets. The Fed prints up capital gains. That’s why President ~~Erdogen~~ Trump wants control of the Fed. He wants that printing press restarted. Trump fancies himself as a monetary policy genius like Erdogen, but the gold market sees print and spend as Weirmar economics.
Capitalism is one thing, but capitalism without free markets is inferior to socialism. This Citizens United perverted version is simply the central government picking winners and losers.
The question that is avoided is, when real interest rates are interest rates minus inflation rate. With inflation at 3%, how does he drive interest rates below the inflation rate? The answer is, the Fed creates new money, buys bonds to reduce the supply of bonds in debt markets. The direct control of price discovery in debt markets leads to indirect altered price discovery in equity markets because the Fed artificially cheapens borrowing rates. So corporations borrow to buy back stock. Without federal price discovery control, called “yield curve control”, it wouldn’t make sense to borrow to buy back stock.
We’ve been too tolerant of the lying. They tell us “print and spend” is borrowing, and it isn’t. Borrowing is a zero sum operation, while printing is adding money to the economy. It’s a sham characterization defined as the form not matching the substance.
We should tell our congressmen that they need a separate “print” ceiling along with the “debt” ceiling, because the print ceiling is a allocation to the rich.
Babbling Ben Bernanke, who started this quantitative easing summed it up:
>Lower corporate bond rates will encourage investment. And higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending.
It’s called trickle down economics, and like every thing else with this government, we hear nothing but deceptive bullshit as they try to put lipstick on this pig. BS terms like “yield curve control”, “monetizing the debt”, or “quantitative easing (QE)” all mean the same thing, fire up the printing press to inflate asset prices.
And then, while they steadily drive housing prices through the roof, asset inflation isn’t counted as inflation. Maybe gold is the inflation gauge.
Tell your congressman that we don’t want federally managed price discovery in debt markets using printed up money. Tell them we need a print ceiling along with a debt ceiling. Tell them we don’t need this bullshit where borrowing and printing is commingled.
Here’s Trump’s tweets from his first term.
https://www.thetrumparchive.com/?searchbox=%22quantitative%22
He loves that printer because he knows that it increases P/E ratios and asset values. It’s managed economics not free market. This economy is rigged. We need to get rid of it, and that means get rid of the Uniparty.
Socialism or free market based capitalism would be better. But this piece of shit, federally managed price discovery “capitalism” has to go.
While the corps were using artificially low interest rates to buy back stock, middle class savers at banks were earning a negative real interest rate. And if you are an economically unsophisticated person who heard to open an IRA for retirement at a bank at 0.25%, you likely damaged your retirement because these negative real interest rates function as an asset tax on the middle class. It’s Uniparty waged class warfare.
taxes ⬆️⬆️⬆️
at least I have a home in Minecraft
He said drive prices down.