Recently, as the epidemic situation has been brought under control, real estate prices in some large and medium-sized cities have continued to rise. A new round of real estate boom with the main purpose of preventing currency depreciation and hedging inflation has emerged. We must be alert to the “fat tail risk”.In the complex economic environment, the housing prices in the first-tier cities in the mainland have risen sharply. The “animal spirit and fat tail risk” are worrying. In the United States before 2008 and before the Asian financial crisis in 1998, real estate showed a common "fat tail risk". The government and financial decision makers should not only prevent the spread of individual irrationality, but also have a clear understanding of the complexity and fragility of real estate finance.In the process of real estate stalls, the credit creation of financial accelerators and the amplification mechanism of currency multipliers have tremendous energy. The central bank considered the withdrawal of policy tools for the first time in six months. This shows that the monetary authorities recognize that under the conditions of this round of credit easing, the huge amount of liquidity may further induce asset price bubbles. This is rational and timely self-correction.
