Will low interest rates boost the sales of houses?

May 3rd, 2010 by admin | Posted in Uncategorized |

.rates ground zero Will low interest rates boost the sales of houses? By Sidney Perez

, president of the , decided in December to decrease the to 0,25%. But will it really allow the and the economy in general to recover?
I do not really think so.
For instance, the sales of houses in New York have been a little decreasing since December.
One explanation is easy : even if are very low, cannot really lend money because they suffer of a big lack of .
Furthermore, they cannot lend money to people without a very good . So, only “the rich” can get .
Thus, decreasing is not really efficient if the population does not have access to credit. Indeed, a lot of employees are losing their job, and are automatically ineligible for a loan.
Maybe decreasing can help but the most important is to find a solution to .

Should the nationalize in order to be sure that they will be well managed?

Is ’s new politics able to cut and help the “new poors”?

All are questions that are crucial to face the crisis.

But, is it really posible to say that the economy will really be able to recover?

I do not know the answer, but I am afraid that too much in the past just created an unreal market which real value is now known and very low comparing to the past.

So, it will be hard that the economy will recover totally to the level it had before the crisis.

http://www.trulia.com/real_estate/New_York-New_York/market-trends/

http://thescotsman.scotsman.com/business/Fed-takes-bold-step-.4798988.jp

http://www.msnbc.msn.com/id/28854051/

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