“The QE the fed is doing (purchasing $85B of securities per month) is keeping both the housing market and stock market at their current levels. Without that prop up, each of these markets would “topple” like a domino in that there would be a quick return to real value.
“Additionally, America has 20% of it’s population below poverty levels, living on foodstamps. And egregiously high unemployment. Those that are employed have seen their real wages fall for the past few decades. The financial sector is becoming an increasing burden to the part of the economy that actually produces shit, and every day more people feel the effects.
“It’s unsustainable, and somethings going to give at some point. If (when) QE ends, there will be stock market panic and homes will recede in value back to 2008 levels. I think this is the most likely catalyst of the next crash. It’s been propped up beyond it’s real value, and investors have been speculating on the housing market specifically because the FED is actively preventing it from returning to it’s “low” actual value. It’s an artificially guaranteed return for investors as long as QE remains.”