[Patrol8394]

Prices are driven up by people’s inability to be financial savvy.

People keep overpaying for things like cars and houses. Any drop in prices by few % makes it look like a great deal, and people fomo into it; when in fact prices are still insanely high and completely disconnected from the real economy.

More and more people will be house poor. Many ex-FAANG bought into $8k mortgage depleting a good chunk of their saving for insane downpayment, thinking their income would go on for the next 30y.

I believe we will start see the effect of this in the coming years.

There is no way around it, people must stop buying and stop paying $5 for a coffe.

[raincom]

What if the neutral state of affairs has full of people who are not financially savvy? Maybe, we are in that state.