Spooked by inflation not being temporary.
ECB second giant to taper. Bank of Japan already ended QE. Bank of Canada shed 15% of assets. UK, Australia are tapering. New Zealand quit cold turkey
The housing insanity “softens.”
The price of FOMO.
And the utter craziness has begun to “decelerate” in some markets.
Why is the Fed so far behind the curve? Other central banks are now making room for “persistent” inflation.
The Fed is a laggard, now discussing when and how to taper QE. The ECB is an even bigger laggard, as inflation begins to rage.
House prices in the largest markets have gone nuts amid “extrapolative expectations and speculative behavior,” as the Bank of Canada put it.
The Big Taper starts one central bank at a time. But you gotta keep the markets from swooning with a bit of welcome delusion.
Housing craziness is front and center.