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That sounds like a feature, not a bug.

High real estate prices sound good for people that hold real estate. But in the aggregate, high real estate prices are a net transfer of wealth from the young to the old. We need healthy young families in our society, but we've priced them out of living.

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That’s true in the long term.

In the short term, a sudden drop in house prices causes economic pain (e.g. people trapped by negative equity), and the US has a lot of economic pain about to hit it already.

I’m kind of sceptical that the scenario the article presents will play out though. The Fed would reverse course and buy up the bonds, if it came to it.

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