The 
Federal Reserve has lowered [tag-tec]interest rates[/tag-tec]. The surprise to most economists was how much the reduction turned out to be.
Of course the stock market took off. That’s not surprising.
Question is what will this move do for [tag-ice]housing[/tag-ice]?
It’s a start. Real estate needs money to move.
Will this reduction cause inflation?
Only time will tell, but it’s a risk the Feds were willing to take to keep us out of a possible recession; always bad news during an election year.
Frankly, I’d risk some inflation too in order to receive the greater trade-off of freeing up more money for investments.
But Vitaliy Katsenelson has an excellent editorial concerning other moves the government may be making to aid distressed homeowners facing [tag-self]foreclosure[/tag-self].
I agree with his views that the government may end up doing too much for these folks. All the government really needs to do is free up the money. How the money is managed after that is really up to individuals. We can not expect the government to bail us out every time we err.
Popularity: 6% [?]
Related Websites -
The BP-Induced Economic Hangover President Obama made promises last night on behalf of the federal government for which there is no present money to fulfill. Millions of gulf coast residents will be expecting billions of dollars to flow their way and not just from BP. Indeed, I will not be surprised if BP is...... - Income Tax Refunds and Your Retirement Plan Federal income tax refunds present two problems for the retirement saver. That's right, problems. Let me explain, in just a few words. The first problem is one of tax planning. If you regularly receive a tax refund, you are not planning properly. Rather, you are extending an interest free loan......
- Blogging to the Bank 3.0 - Honest Review. Useful Points to Remember There are plenty of different ways to make money online today. Do you wonder how some people are able to find different ways to make money or have real income from their website? Well here are some specific steps that you might take to ensure that you can put your......
-
Why You Should Try To Get the Smallest Tax Refund Possible? It may seem like a great idea to expect a large tax refund year after year. Many people anticipate their refunds with plans to use them for vacations and other luxuries they otherwise don’t plan and save for in any other way. However, while you may be used to...... -
Protecting Your Investments In Times of Economic Crisis The United States economy is currently experiencing a serious financial shake up. No one really understands just how deep or how far reaching the damage is going to be, but what we do know is that there is going to be damage, and that we are going to be at......