Quote:
Originally posted by SoCal911SC
no, I'm interested in what you think on this.
would you agree with my last post?
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I do agree with you to some extent. If the market goes really bad south, the FED will be in a hard place. Their primary goal seems to be controlling inflation. It seems, if faced with a crashing RE market or inflation, the Fed would address inflation (continue rate hikes). Of course, there is a good possibility a crashing RE market will eliminate inflation. On the flip side, does the Federal Reserve have enough room to lower rates and ease the blow?
If consumers stop buying, will not inflation be contained?
Recent home equity lending
"...home equity lending at banks has slowed from a peak rate of $2 billion to $3 billion a week to "a trickle" of $100 million in the past several weeks, according to a Citigroup report."