Federal Reserve banks on housing

  • Article by: ADAM BELZ , Star Tribune
  • Updated: September 14, 2012 - 6:22 AM

If interest rate cuts can boost the economy, it'll be by motivating home buyers, experts say.

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tinitiniSep. 14, 12 8:01 AM

For all the sunny talk about what QE3 will bring, to me it still smells like the Fed continuing to bail out the folks responsible for the Mortgage Backed Securities fiasco. It is time for the Federal Reserve to be replaced with something better.

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cedarriverSep. 14, 12 8:20 AM

I hope it helps existing home sales, mine has been for sale for two years now. It seems they want to help new construction when theres a glut of homes already on the market, where I live anyway.. (north central Mn.)

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highlife75Sep. 14, 12 8:39 AM

Another half a trillion dollars we don't have, spent in the worst possible place, just to give Obama a chance at another 4 years? This has to stop now!

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choochoo12Sep. 14, 12 8:46 AM

Interest rates have been at RECORD LOWS for years, all during the Obama administration, and it has NOT HELPED at all. Why? When you have Obama and the Democrats CONSTANTLY demanding tax increases to fuel their welfare spending binge (there are votes to buy, you know), no sensible investor is going to invest knowing that the Democrats will soon be scheming to steal all those EARNINGS away. So, instead of flowing to new projects that create jobs, money flows into existing stocks, and also out of bonds that pay so little interest that inflation eats away the returns and into the stock market, and what we have is a STOCK MARKET BUBBLE which will one day pop. Oh, but Obama points at the stock market bubble as an example of what a great leader he is why unemployment remains at record highs.

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clnorthSep. 14, 1211:16 AM

Pretty tough for most people to sell their home, since they are underwater and can't get an appraisal higher than their debt on the house.

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stolaf80Sep. 14, 1212:28 PM

Oh sure, printing more money is always a super idea. It worked out so great for the Wiemar Republic back in 1923. We are being led by a bunch of amateurs.

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stolaf80Sep. 14, 1212:29 PM

"Pretty tough for most people to sell their home, since they are underwater and can't get an appraisal higher than their debt on the house.".........Never fear. The Fed can just keep printing money and inflation will put them back on top!

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snipesolafSep. 14, 12 1:48 PM

I have an idea, lets re-inflate the exact bubble that steered massive malinvestments in our economy. That should work.

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peterschiffSep. 14, 12 2:41 PM

The Federal Reserve (private bank and as Federal as Federal Express) is out of bullets. They can't lower the interest rates anymore without paying people to borrow. They can't raise the interest rates because everyone would default on their loans (this would be the best thing to do) and the malinvestments would be exposed. It would be painful to do this and would rock the economy but their would be a chance that the economy would survive. Instead of taking the medicine the Fed has tripled down on QE3 (more money printing or adding 0's into computers). Eventually inflation will take hold and will wipe most people out. It is just a matter of time.

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chuckynarzSep. 14, 12 3:07 PM

Too little too late.

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