| How is it possible with such accommodating mortgage rates such as we enjoy at the moment, to suffer a real estate crisis with record defaults, foreclosures and many mortgages exceeding the value of homes?
For the record, Paul Volcker was Federal Reserve Chairman from 1979 to 1987, exactly the period of the 'Matterhorn' on the chart. It appears that he came in when rates were around 9%, did a big battle with inflation and left when mortgage rates were back down at 9% after peaking at almost 15%..............................................Full Article: Source
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