Federal Reserve trapped in its own game – stagflation hits Main Street as housing markets slumps and rents start rising rapidly
Peter Oberois
Apr. 3, 2007

Federal Reserve is very concerned about the inflation from rising rents. Before the recent real estate bubble collapse, people were buying homes and leaving the rental apartments. It made sense at that time to buy than to rent with real estate moving up close to seven to ten percent every year.

Now people are favoring rentals to buying residential real estate. Consequently, the rents are rising rapidly. According to some studies rents are rising at the rate 4-6% per year at this time. This adds to consumer price index and the Fed is really concerned about the same.

The last leg of Stagflation has started hitting the main streets. The wages and real income are at best sub par. At the same tine the inflation is rising on the surface. If you add up everything the stagflation is creating ripple effects called induced deflation. People are paying high tax, high gas price, high heating and utility bills and now higher rents. As a result their residual income to spend in the fall is falling short of the economic expectations. The effects are serious on the stock market and the economy.

A four-day Global India Business Summit will be held at Cologne from July 5 with an aim to promote investment in various sectors
Media Release
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The sudden rise in home is actually sucking the liquidity out from the stock market – April crash?
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The trend is actually much more significant that perceived because of the hedge funds. Hedge funds are actually moving out of the stock market to real estate. This can cause massive outflow of funds from stocks to real estate.
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Federal Reserve trapped in its own game – stagflation hits Main Street as housing markets slumps and rents start rising rapidly
Peter Oberois
People are paying high tax, high gas price, high heating and utility bills and now higher rents. As a result their residual income to spend in the fall is falling short of the economic expectations.
READ MORE>>

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The worldwide depression will be triggered by China-US tension over trade and Chinese spying – other nations are also concerned over Chinese ambitions
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