I wonder what the US going into a deflationary spiral would mean for real estate like rental houses? When economists say deflationary spiral do they mean prices of assets (like houses) would fall?
Then the Federal Reserve comes along, declares all of our progress problematic, and manipulates the currency we transact in to make our progress invisible to each other.
Slowing down is never beneficial to the individuals getting laid off, which is why these destructive policies enjoy broad support. If 90% of the work is required, and everybody is still expected to work the same full time, then 10% of people are left without chairs. Focusing on the first condition is the path to make-work. Focusing on the second condition is what we need to do instead.
- low interest rates boost home prices, as lower monthly payments increase "how much" house a buyer can afford
- as the post states, the Fed's actions are increasing income inequality. If rich people are getting richer, and they don't want to put their money in treasuries because the yield is zero, that money has to go somewhere. So stocks, bonds, real estate. So that may increase demand for real estate among the wealthy.
But, nobody knows.