They have so much money right now out that it's the very Weimar Republic like or Japan's late 80's. And I doubt we handle it as well as the Japanese. You can't make everyone homeless and expect those with assets to be just fine as well, that means pay will have to increase, which turns into a hyperinflationary vicious circle that ends in disaster.

Powell WILL HAVE TO RAISE rates soon, he has no choice. a 1 to 2% rate increase will end this real estate boom with an abrupt stop.
The question is how long is he going to play chicken before this get's to the point of no return. I'm not a doom and gloom, but this is
absolutely insane what is going on in this country and frankly worldwide.

And in that scenario where someone gets in Real Estate at the very peak.. So what if he holds an overvalued asset, he still has to manage the payment every month. Unless he has the type of job or (other assets that will inflate as well) he's cooked as anyone else without assets. Eventually, people are going to want to unload their homes in panic, flooding the market with inventory, no one will snap it up like right now and then we'll see some scary things. I'm actually worried that deflation is more of a threat than ever before if the Fed is forced to raise rates and dramatically to keep inflation in control.

Consumer goods are inflating only because of supply-side shortages due to supply chain issues. Once those get to normal (and it could be a while) those prices will drop back to normal. A lot of wholesalers already have orders in so if prices go too high demand drops and then they have a glut of product they have to push and they'll need buyers so prices can't continue to be high if there are no buyers.