Macro-Economic Insights & Property Analysis
Make the best real estate decision for yourself with macro-economic insights
What does it mean for your money if Fed printed U$300 billion in a week?
Unrealized losses started when the Fed hiked the interest rates rapidly in 1 year.
They hiked the interest rates by 0.25% yesterday.
What do you think will happen to the total unrealized losses?
Unrealized losses was what crippled Silicon Valley Bank...
What did you get out from this article by FDIC?
When the Fed spiked interest rates from ~0 to ~5% over the past year, it had 3 main effects:
1. Undercut value of bonds, especially long-dated bonds.
2. Made lending more expensive, particularly for large purchases like real estate that have to be financed. (Resales > New Launches)
3. Increased government borrowing costs.
Disclaimer: magnitudes are hard to calculate, and I make no predictions about the price of any asset. A lot depends on how the US government including the Fed reacts. I do not make trading recommendations.
Do you think a recession is coming soon?