How the FED stole 8 trillion in Homeowner Equity and pocketed the Money.

A home that used to sell for 1 million dollars may soon sell for $800,000. 

But, the monthly mortgage payment will not be any less than it would have been before the drop in price because the FED has raised interest rate charges.

The Fed using existing and plentiful Homeowner Equity to back new mortgages while giving these Equity Rich homeowners some residual income every month is a win for all homeowners. 

Instead of rewarding Homeowners with significant home equity, the FED just stole 8 trillion dollars of Homeowner Equity that had accrued over the past few years, equity that could have been used to both back new mortgages and provide homeowners who have ample equity a way to create a modest amount of annual residual income.

It appears The FED has narcissism issues in which they refuse to consider Equity Rich Homeowners and their trillions in equity as a way to both back new mortgages and as an economy stabilizing option.

Further injurious to existing Homeowners, Home Sellers, and Home Buyers. The lower home prices, while not benefiting Homeowners, Home Sellers, or Home Buyers will benefit both the FED and Hedge Funds that do not require FED money to buy a home and have been set up to purchase homes and convert them into rentals.

 

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