Kathy Fettke explains how the Federal Reserve's money supply expansion drove up prices, and how rising interest rates extract money through bankruptcies and foreclosures. She points to the expiring Trump-era bonus depreciation tax benefit as a specific factor inflating asset purchases this year.
You and I talked about this on a stage in front of thousands of people, that the Fed messed up. They put too much money into the, into the, you know, money supply, and that drove prices up. How they didn't see that, I don't know. But they have to pull that money back out, and they pull the money back out by raising interest rates. And I've said this before, they pull that money back out through bankruptcies, through foreclosures. That's how you get money back out of the market. I hate to say it, it's just how it is. So when, when asset values went up, and you're right, add to the fact that every headline was saying, oh my gosh, real estate's one of the best hedges against inflation. Add to it Trump tax, you know, the, the Trump tax benefits that expire this year. So not only, you know, could you get ahead of inflation, but you didn't have to pay taxes. So of course anyone who understood—
Wait a minute, what Trump tax benefits expire this year?
Um, the, the bonus depreciation.
Okay.
Uh, yeah, it is like just a massive tax benefit for, for buying, um, you know, certain assets. Talk to your CPA, but that expires this year.
