Multi-family construction is booming as too much money with a shortage of good investment opportunities flows into this sector. These new apartment complexes built on cheap money are beginning to pressure existing home prices. This and a combination of other trends have long term implications for the economy and society. The article below explores some of the ways bad housing policy takes a toll on America.
Low rates typically leads to mal-investment. Sounds like a classic story for Michael Pettis. The 10 year is the riskless lending rate and right now its close to zero