Emerald

Putting the Perception and Reality of the Financial Crisis Into Perspective

Generally, home prices go flat for a number of years while the economy slowly catches up. Also, it will depend on where the price of mortgages goes over this time. After another year or two of asset defaltion, we should see inetesrt rates reflect the excess money in the system (inflation). Short term rates may stay low, but the twn through thrity year will move up to compensate for excess liquidity. This will keep housing prices depressed. IAfter the inital shock of all this wears off in another six months, the value of the U.S. dollar will start to decline again.