banks - housing bubble

[wkmac]

The basic point is that the recession of 2001 wasn't a typical postwar slump, brought on when an inflation-fighting Fed raises interest rates and easily ended by a snapback in housing and consumer spending when the Fed brings rates back down again. This was a prewar-style recession, a morning after brought on by irrational exuberance. To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.

Nobel Prize Winner in Economics Paul Krugman, Dubya's Double Dip?, New York Times, August 2, 2002'.

 

[Wally]

Real estate investor warns US is entering the 'greatest' correction of his lifetime

Despite a great "correction" on the horizon for the real estate industry, private equity fund manager Grant Cardone criticizes Federal Reserve Chairman Jerome Powell for killing the housing market.

www.foxbusiness.com