Thursday, February 2, 2012

The Fed Causing a New Housing Bubble?

The Federal Reserve is causing the next housing bubble even though we haven’t resolved our current housing debacle.

They’re doing this by keeping official U.S. funds at zero cost, below the nominal 2% inflation rate. The actual inflation is higher. This makes it easier for the public to take mortgages they cannot afford. And government guarantees will again be taken over by the taxpayers.(See the Earl J Weinreb NewsHole® comments.)

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