NY Fed’s Dudley, Retail Sales, Home Prices And … Bubbles

Is the New York Fed’s Bill Dudley calling for another home price bubble to solve the malaise in retail sales in the USA?
The fate of U. S retailers, many of whom are under siege from online competitors, may rest in the prospects for the U. S. housing market, said William Dudley, president and CEO of the Federal Reserve Bank of New York, in an interview done on Tuesday morning by Macy’s CEO Terry Lundgren at the National Retail Federation’s (NRF) annual convention about evolving consumer behavior.
The second most important asset on the balance sheet of many households is housing equity. So, in addition to being a source of shelter, housing can be a major form of collateral for borrowing for many households. In fact, for those households that have collateral available to secure loans, housing equity is by far the most important form of collateral.
So, that more home prices rise, the more equity is available for home equity EXTRACTION. Remember the housing bubble?

This post was published at Wall Street Examiner by Anthony B. Sanders ‘ January 18, 2017.