There was a movie from 1983 called “The Keep” with Scott Glenn, Gabriel Byrne, Jürgen Prochnow and Ian McKellen. A great cast, to be sure, but the nemesis in the movie was … a man in a rubber suit.
The title “The Keep” is more appropriate for the NON recovery of the US economy and housing in particular. That is, did The Fed’s monetary policy help KEEP households in rentership mode? (And its another name for The Federal Reserve building on Constitution Avenue in Washington DC).
If we look at households created during “the recovery” and all The Fed’s monetary stimulus, all households created were renters.
This is not all that surprising since home price growth is 13.3X wage growth.
But the US is not alone in poor wage growth. Europe, UK, Japan and the US are all suffering stagnant wage growth. While house prices are booming in many countries.
The US homeownership rate keeps falling despite The Fed’s massive intervention.
Any wonder why the M1 Money Multiplier and M2 Money Velocity are so low?
Like in the movie “The Keep” you will have to rent.