Friday, Dec 07, 2007
Rate cuts won't help the housing market
MoneyWeek: Rate cuts haven't stopped the US housing crash
The pundits have been unanimous in welcoming yesterday's rate cut. But whatever spin property salespeople put on it, it won't make much difference to house prices. Just look at what's happening in the US...
Posted by mary @ 12:25 PM (180 views) Add Comment
1 Comment
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1. Bystander said...
As Collins continues: “with the wholesale markets effectively closed to many lenders, they [banks] must rely on retail savers, and we just don’t save enough to meet the demand for advances.”
Wouldn't a rise in interest rates have encouraged more people to save and therefore act as a buffer to this credit crunch, as well as begin to deal with the ever increasing inflation? Just a thought, not that i'd particularly like my hard earned savings being doled out to bolster up the over inflated housing market.