newreaderAZ

Low Rates, Big Problems

The government through all its actions is trying to slow down the vicious downward economic cycle we find ourselves in. The percentage of distressed home sales (REOs and short sales) in the Phoenix area is near 70% and climbing, and other areas of the country are having similar problems. If job losses keep rising, home values keep falling and confidence continues to deteriorate, then the vicious cycle will continue until we reach depression levels. Our only hope is to prime the pump and attempt to stem the fall, and deal with the inflation mess afterwards. I'm not convinced we need this particular type of pump priming, but pump priming is without question required.