In the U.S., the Federal Reserve kept interest rates near zero for over a decade, which encouraged massive borrowing and risk-taking—especially in real estate and stocks. Investors, banks, and even regular homebuyers took on cheap debt, inflating asset prices. When inflation surged, the Fed hiked rates fast, and suddenly the over-leveraged system started to crack. Real estate slowed, mortgage rates doubled, and affordability tanked. Now, commercial real estate is struggling, some regional banks are shaky, and housing feels increasingly out of reach—while homelessness and rent stress keep climbing. The Fed’s long game of easy money followed by hard tightening has created a volatile, uncertain economy.