Another problem with tepid wage growth, in addition to crushing the Fed's credibility, is that it keeps a lid on how much overall price levels can rise by, i.e.

Meanwhile, with record global debt, it has been the Fed's imperative to boost inflation at any cost to inflate away the debt overhang, however weak wages have made this impossible.

* * * Meanwhile, for those looking to buy for the first time, conditions have never been worse.

Growth in property values is outpacing wage gains and limiting affordability, representing a major headwind for first-time buyers, and the broader market.

while the next chart shows the divergence between actual household income, and the income needed to buy the median priced house.

Categories: ZH