Brace Yourself for the Biden Housing Bust - The American Spectator | USA News and Politics

Brace Yourself for the Biden Housing Bust - The American Spectator | USA News and Politics:Brace 

• When will he learn that Carter’s presidency is an example of what to avoid, not to emulate?

"...But a better corollary for the coming Biden bust is the Carter crash that occurred three decades earlier. During the final two years of Carter’s term, sales of existing and new homes collapsed because the Fed was forced to raise interest rates sharply to get double-digit inflation under control. 

This, in turn, produced double-digit mortgage rates that priced millions of potential buyers out of the market.
...The Fed lost control of inflation by abandoning its decades-long strategy of pre-emptive restraint—that is, tightening before inflation takes hold. That policy, promoted by Fed Chairman Paul Volcker in the 1980s, has delivered price stability for nearly 40 years.… 

We believe that the policy of pre-emptive restraint is what anchored inflationary expectations after the mid-1980s by preventing inflation from taking hold. 

The country is now paying for the Fed’s amnesia..."