Home loan cap insures against the unexpected

[freedom]

No Government in right sense will allow property to crash. Is the crash that forced upon them.

The interest rates will be crucial. In the event US up their Rates, must our banks and MAS follow ?

if I am not wrong, MAS does not actively print a large amount of SGD(but it does passively print a lot of SGD because of influx of USD/EURO/YEN..), as SGD can only circulate within Singapore, it causes serious inflation.

In the case of US up its interest rates, significant USD liquidity will be withdrawn from Singapore. It will cause tight SGD liquidity as SGD is sold to MAS(MAS will cancel them, they are out of monetary system) in exchange of USD. Supply and demand, tight SGD liquidity will up SGD interest rate automatically. In that case, will MAS print and print to ease SGD liquidity and let inflation shoot?

Then now the question is when US will up its interest rate. Though FED pegs its policy to unemployment rate, if significant return can be expected from the economy even if unemployment rate does not drop to the expected level, higher interest rate expectation will set in. FED has to up its interest rate, otherwise, inflation will rise higher and higher, it will run out of control. But it seems that there is not any particular industry leading US to higher return yet. FED is hoping to suppress long term interest rate to have something innovative out.