Thus far, what factors have played in the decline of the recent market swoon and it subsequent recovery? Why did the Federal Reserve, recently leave rates unchanged and were there any of the CAPM (Capital Asset Pricing Model) components at 'work' here, and if so, how were they changed.
2007-03-26 10:35:04 · 1 answers · asked by Munch_101 1 in Education & Reference ➔ Homework Help
I am in Louisiana so I know that the past hurricanes have had some effecton the market changes here and have had a huge effect on the real estate market here, as well.
I think the interest rates were left unchanged due to the fact that there is no where to go but up and our economy was not quite ready for that. The next time they will definitly go up and that may or may not be a good thing. A lot of banks and finance companies are loosing big time with the flux in real estate. The low interest loans and 95 and 100% loans are really hurting the banks when an early forclosure takes place , they just loose money and there is no gain in that for anyone.
The fact that the cost of living is going up, thus the prices of food, gas and other commodities makes it harder for some people. But the prices of assets are still rising in most areas and I think will continue to do so for awhile longer.
Everything is so inflated I am jsut waiting for it all to bust!
2007-04-02 12:47:28 · answer #1 · answered by Miss Know It All 6 · 5⤊ 0⤋