Monday, Jun 08, 2009
When governments start to raise interest rates, it's game over for house prices.
Bloomberg: Bernanke Conundrum Threatens Housing on Mortgage
June 8 (Bloomberg) -- The biggest price swings in Treasury bonds this year are undermining Federal Reserve Chairman Ben S. Bernanke’s efforts to cap consumer borrowing rates and pull the economy out of the worst recession in five decades.
Posted by flintster1994 @ 12:01 PM (608 views) Add Comment
1 Comment
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1. uncle tom said...
Market volatility generally indicates faltering market confidence. If confidence in the Greenback is unravelling, the Fed will need to be quite assertive to restore matters.
A calm, managed return to normal interest rates would seem prudent, and might soothe the markets - that won't help the property market much, but as the US housing slump is now moving towards its conclusion, that may be the lesser evil.