According to economist Arnold Kling, it’s that we have people owning (rather, trying to own) homes worth ten times what they earn annually. Here is his TCS Daily article.
Kling is against political intervention to subsidize an untenable status quo.
He’s right. We have to go through an adjustment and in that adjustment some people will take losses. It’s just wishful thinking to believe that there is some painless way for politicians to get out of the mess the Fed has created with its easy money policies.
