The FED

The overall gist of all the FED"s actions is to boost home prices. They constantly peddle this as good for America when we all know it is unrealistic. Ben Bernanke in 2007 was on television saying home prices would NEVER drop because America had never had home prices declines in over 90 years of statistical data (2007 average home price was over $228k, now we stand around 178k) . America's wages are deflating (adjusted for inflation), taxes, fees and "other" (i.e.- monopoly greed) costs are going up constantly, and the FIRE economy jobs are not coming back. The reason people are defaulting is that homes were overpriced and overpaid for and people don't have the income to service the debt! And they still are by far. Why should one be a debt slave to own a home? This does nothing to help homeowners. It of course only helps the banks.

People are not borrowing because a generational shift in mood and attitudes toward debt is occurring and the FED is lost on this point. Banks are not lending because they too are human subject to social force moods and risk taking is diminishing. Asset mania has likely peaked for more than a generation. I strongly believe we are in a time when more and more might see it prudent to save over invest.