Ben Bernanke, Chaiman of the Federal Reserve, was quoted by associated press as saying that current mortgage woes are unlikely to have a negative effect on the whole economy. That news flies in the face of what the drive-by media have been reporting. It will be interesting to see what shakes out.
Other interesting news in the same report was that as the fed tries to walk the fine line between curbing inflation and stimulating healthy economic growth, they are considering both raising AND LOWERING interest rates. One takes care of inflation, and one stimulates growth. Lower interest rates would be great news for the real estate industry. If the fed were to lower interest rates, that would surely stimulate much-needed growth in our sector.
This is one story you should read. It contains the theories of both ex-fed chairman Allan Greenspan and current chair Bernanke. To read the whole thing, click here.
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