I agree the government will drag this out as long as possible so it will be less painful. I don’t think it will help much, but they will try. I just think of Japan and their lowering of rates and how it did not really help them.
On another note, I reconsider that higher rates will lower houses. I remember somewhere there was a thread that charted rates and housing prices. There was a time when prices were high and rates were high also.
Still, though, I think it’s a different animal this time b/c of the amount of free money, the teaser rates that allowed people to buy double the house – doubling the price. An abrupt turning off the spigot of free money is resulting in declines. I believe raising rates will push prices lower. JM2C.
