Monday, August 25, 2014

Younger households finding it harder to afford to buy homes

I think one of the problems of the current monetary policies is that asset prices have risen very rapidly, notably in stocks in US and bond prices. The bond market, credit market is inflated and the stock market is inflated, and because of the strong housing price recovery in the US younger people cant afford to buy homes. 

The monetary policies by boosting asset prices have lowered the affordability of assets. In future returns from all kinds of assets real estate, stocks, bond, even commodities will be relatively low.