Fed set for landmark move to prime US economy
(Federal Reserve Board Chairman Ben Bernanke addresses a symposium at the Federal Deposit Insurance)
The Fed is trying hard to get the US economy going. Here is a message our Prudential Office received from our Owner Rich Cosner, Prudential Ca Realty, Anaheim Hills, Ca:
Hopefully, all of you have already voted today or certainly will vote by the end of the day. I personally believe that all the negative campaigning on both sides has depressed everyone. Without these ads running, people will start to see some bright spots which are just around the corner.
When Japan went through a depressed economy, they now realize that Japan's Central Bank did not take the appropriate moves to rejuvenate their economy and that period of time is now called the "lost decade." Our Federal Reserve is not going to make the same mistake. Whether you believe printing money is good or not, it certainly will have a stimulative effect on our economy. That will be great for real estate. It likely will lower already historically low interest rates and it will bring inflation back into the picture. Inflation will increase everyones house values. If you have a low fixed rate mortgage with inflation raising your home value every year, it is a dream come true. What happens next? The masses of people will see home prices rising, the media reports this as big news and wave after wave of buyers will rush into the market.
This is a huge opportunity for your buyers: How do you explain the opportunity?
1. Lowest interest rates since Dwight Eisenhower was president in the early 50's
2. Lowest prices in California in a decade
3. Inflation just around the corner to lift those prices
4. Rising prices will bring all the potential buyers flooding into the market to get in the game before they get priced out.
5. Waves of buyers will cause appreciation to happen, in addition to the inflation, raising prices further.
This is the scenario you will see over the next year or so. Please take the time to read the article in the link below which came from Yahoo News.
http://news.yahoo.com/s/afp/20101102/ts_alt_afp/useconomybankrate_20101102181023
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