Saturday, September 15, 2012
Update on Interest rates from Mr. Fed himself
Ben Bernanke says rates will be relatively low through 2015 and this will stimulate job growth and yadda, yadda, yadda ... does this indicate that Ben has looked into his crystal ball. Clearly I am no Ben Bernanke however I find this an interesting posture right before election time.
He says the goal is to stimulate i.e. make people spend, buy houses, create jobs ... heck we haven't even recovered from the last real estate crash and 18% of all real estate loans are still delinquent (including the new loans made under the newest and most stringent guidelines-Yes!). We might be able to wave the flag however we are a long way from declaring recovery and going on a drunken sailor spending binge. This tactic normally steers the economy towards spending and not saving. We have more rainy days ahead to deal with ... and then ... what about the inflation that will follow the spending spree ... All of a sudden I hear that song in the background "Things that make you go Huh?
Certainly there are great reasons to invest in real estate which I would love to discuss further however this is about Ben so, here's the story released last night ...
http://abcnews.go.com/Business/federal-reserve-interest-rates-low-mid-2015/story?id=17226149
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