An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
Showing posts with label home sales. Show all posts
Showing posts with label home sales. Show all posts
Wednesday, November 16, 2011
Home sales and interest rates...you make the call
There's a widely held view that the Fed, under Alan Greenspan, created the housing bubble thanks to loads of "cheap money." The evidence seems to say this claim is rather dubious. At best it may show that home sales and prices were influenced by lower rates, but the correlation is spurious.
Rates have basically been falling for 30 years while home sales have been rising, falling, rising, falling, rising again and then really falling.
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