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Fed President Warns Of A House Price Crash-ultra Bearish

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Most bearish report ever coming from the FED:


WASHINGTON (AFX) -- One of the greatest risks to the U.S. economy is a possible sharp slowdown in the housing market, said
Boston Federal Reserve President
Cathy Minehan. Speaking to the New England Realtors Conference, Minehan said, "It makes sense to worry" about the impact on economy of declining construction and a drop in household wealth. The Fed's forecast assumes a flattening of home prices and a decline in onstruction.
"Clearly, however, we could be wrong on the magnitudes,"
she said.
"Real estate prices could actually decline."
Another risk lies to the upside: "Stronger growth and somewhat higher inflation are well within the realm of possibility as well.

Talk about spooking the herd! WOW!!!!

IMHO ther Fed are going to do EXACTLY what AL said they would--burst the bubble markets to allow rates to rise enough to kill inflation. The Fed are not going to stop at 4.75% that is for sure.

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similar to what the BOE said to spook our market in 2004, Banks can either change interest rates, or change sentiment by suggesting they will change intrest rates.

Edited by moosetea

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There's more to suggest IR have further to go:


Fed's Minehan sees mortgage default risk no threat

Mon Mar 20, 2006 12:17 PM ET

Printer Friendly | Email Article | Reprints | RSS

BOSTON, March 20 (Reuters) - The risk of more U.S. home-owners falling behind on their mortgage payments as interest rates rise is a concern, but not a major threat to the economy, a top Federal Reserve official said on Monday.
"I am concerned that some people might have gotten in over their heads with this. It's hard to see that, though, as a major threat to the economy," said Cathy Minehan, President of the Federal Reserve Bank of Boston, in a question and answer session following a speech in Boston.
Minehan also urged consumers to save more of their income, adding that the U.S. economy can withstand any attendant decrease in spending.
If) the economy is growing at a healthy rate, you can easily accommodate a higher rate of savings. And we should have a higher rate of savings," Minehan said.

Higher savings are encouraged by higher savings rates. Cathy Minehan (a gorgeous babe BTW ;) ) may be setting the people up for some painful hikes as she mentions decreasing spending which is a natural consequence of higer IR. Its a case of reading between the lines.

Edited by Realistbear

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Although I have every confidence in what the bodacious Ms Minehan states, the same cannot be said of my faith in Bush et al...

Cathy for president! IMHO the US is overdue for a female at the helm and I hope its not Bill's wife!

As far as George W is concerned its a time will tell thing. They all thought General Gordon was a nutter in his fight against Bin Laden's forerunner the Mahdi (Brilliantly played by Larry Olivier in the film "Khartoum")who, at that time, threatened to take over the entire region and install a fanatical Moslem government that promised to rid the region of all infidels and eventually bring Europe to its knees under Allah.


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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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