Real Estate is About to “Get Ugly” as The Fed Makes Drastic Moves

Episode #121

The Federal Reserve could be steering us straight into the next great recession. After decades of monetary and fiscal debacles from quantitative easing to safeguarding big banks that hurt everyday Americans, it seems almost everyone wants the Fed to be taken apart and rebuilt or shipped away, never to have economic sway again. Grave mistakes have been made over the past two decades, many of which will have unfathomable consequences for today’s economy. So, can the Fed do ANYTHING to save us?

Enough with the speculating. We brought former Advisor to The Federal Reserve Bank of Dallas, Danielle DiMartino Booth, to tell us what happens behind closed doors. Danielle was there at the beginning of quantitative easing, fighting back against a program she knew would lead to a weak economy. Now, as Danielle puts it, “everything has come home to roost,” as quick decisions made in the last financial crisis put us in a massive economic bind. This is NOT good news for real estate investors; those buying today could be in serious trouble in years to come.

Throughout today’s episode, Danielle gives us her take on how the Fed could fix itself, current actions Jerome Powell, Chair of the Fed, has put into place to correct the course we’re on, and whether or not a “soft landing” is possible as the American economy heads into a recession. Finally, Danielle gives her advice on what real estate investors should do and why those exiting the market might be smarter than the rest of us.

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Show notes at: https://www.biggerpockets.com/blog/on-the-market-121?utm_source=youtube&utm_medium=description&utm_campaign=none


00:00 Intro

04:03 Working For the Fed

08:17 Where the Fed Went Wrong

16:11 Reversing the Money Printing

24:33 Is a “Soft Landing” Still Possible?

27:46 Investors Are in Danger

38:01 Unemployment Isn't What You Think

40:56 Worse Than 2008

42:44 Connect with Danielle!

43:16 What Will The Fed Do?