Real Estate On Tap

Housing Bubble – Who Caused It?

Federal Reserve Debates the CAUSE

As we close out 2010, the debate over whether there was a housing bubble has long been answered with a resounding YES!  The new question, the more important question is WHO or WHAT caused the bubble?  that question was the topic of debate at a Federal reserve symposium aimed at containing asset prices years after the crash.

Stanford University Professor John Taylor

“In a sense, the fed caused the bubble”, noting that the priority should be not to crate bubbles in the first place.

Former Fed Governor Randal Kroszner

“It was politically difficult to tackle the housing boom because it could be contrary to many other government policies intended to make housing more affordable”.

Smart Minds Do Not Think Alike

The bottom line is that this debate will be ongoing.  many of the sharpest minds are at opposite sides when evaluating the causal link of the bubble and therefore offer very different strategies for avoiding another one.

The Positive Spin

If there is a positive, it is that they are holding debates on the subject which at the very least, shows there is a concerted effort to avoid the next housing crash.  This is a proactive step in ultimately rebuilding the strength and sustainability of the market, which is integral to this country’s overall economic health and recovery.

We have the tools, technology, law and business backgrounds and above all else, the attitude to get you the best deals out there.  Call or contact us to find out what we can do for you!

Tags: federal reserve, housing bubble, john taylor, kroszner

This entry was posted on Tuesday, August 31st, 2010 at 9:42 am and is filed under Headlines, Hot Topics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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