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The Fed can't spark a recovery in the housing market by itself because mortgage rates don't...

The Fed can't spark a recovery in the housing market by itself because mortgage rates don't predict where home prices are going, says economist Robert Shiller. Bernanke only has one policy tool he can use and this is it. He can't change the "‘animal spirits’” that a full-fledged housing recovery will depend on, so there's no reason to call this a major turnaround just yet.
Comments (2)
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    It's the jobs, stupid! to paraphrase James Carville. Or lack thereof, in the case of the U.S. More jobs and more job security are what you need for a full-fledged recovery. And even that will never get housing back to where it was before because where it was before had so much Fed "air" in it instead of real value.
    12 Oct 2012, 07:48 PM Reply Like
  • Hendershott
    , contributor
    Comments (1542) | Send Message
     
    The Fed already sparked a recovery in the housing market.
    14 Oct 2012, 02:49 PM Reply Like
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