Chasing The Wind, Fed Style

Raising the federal funds rate and reducing the balance sheet are, without question, mopping up the same liquidity that’s floated up the stock market indexes well beyond what an honest man could possibly comprehend.  This is also the same liquidity that has floated residential real estate prices above the epic 2006 high-water-mark.  What will happen to these extreme asset prices when the liquidity that’s floated them up, recedes?