The daily reckoning brought up a very good point. Why would banks lend? If you’re going to lend money, you expect to make a return on your investment. With interest rates at such low levels, it hardly seems worth it.
In 2002, drywall was $1.07/sheet. In 2009 drywall was $9.00/sheet. In 2016 drywall is $11.00/sheet.
Oil drove up the price of everything, culminating in the housing crash of 2009. Well, gas went down, and houses went down to historic levels. Everything it takes to build the house though, remained stubbornly unaffected.
Q.E. prevented the deflation of building materials, and other things that went up wildly.
There has been no recovery, because shit is too expensive.