Trump orders $200 BILLION in mortgage bond purchases to push mortgage rates lower.
But letâs be clearâ
If this is really about âlowering mortgage rates,â it does NOT fix housing.
It inflates the bubble.
The real problem in U.S. housing isnât rates.
Itâs prices.
đ Home prices are already at all-time highs
đ¸ Affordability is destroyed
đŚ Supply remains tight
So what happens when rates are forced down?
⢠Monthly payments fall
⢠Buyers rush back in
⢠Bidding wars return
⢠Prices explode even higher
This is extremely dangerous.$SOL
Housing becomes a policy trap: They canât allow prices to fallâbanks and consumers would get hit. So instead, they inject liquidity to keep it alive.
Thatâs how bubbles grow bigger before they collapse.
â ď¸ 2006 didnât crash overnight. It was âsupportedâ again and again⌠until it finally broke.
And when housing rolls over, it hits everything:
⢠Bonds move first
⢠Stocks follow
⢠Crypto gets the most violent move
This isnât stability. Itâs choosing more risk later to avoid pain today.
Iâve studied macro for 10 years and called nearly every major market topâ
including the October $BTC $ATH .
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