Since 9/11 & subsequent iraq war was the cause of real estate bubble in the first place.
2007-05-09 15:05:46 · 9 answers · asked by Anonymous in Politics & Government ➔ Politics
I believe so. History tell us that war was always followed by housing boom. When the war ends, still rediculously-high home prices, especially in Southern California will come down to a normal level.
2007-05-09 15:07:57 · answer #1 · answered by Days 2 · 0⤊ 1⤋
I believe the real estate bubble was caused by mortage rates hitting 45-year lows, bottom out below 5% for fixed rate mortgages. This boosted the house-buying power of consumers and with so much money chasing a relatively fixed number of homes, price increased. This rise then lead to speculation on real estate. Lowered lending standards and "creative" mortgages like interest only, or worse yet negative amortization, aggravated the problem too.
I don't follow your theory that ending the war will exacerbate the real estate bubble problem.
2007-05-09 15:14:08 · answer #2 · answered by Anonymous · 3⤊ 0⤋
War in Iraq and current rel estate slump are not related. We know Bush invaded Iraq, but the mortgage lenders got too greedy by signing up bad credit history borrowers.
2007-05-09 15:10:38 · answer #3 · answered by furrryyy 5 · 2⤊ 0⤋
There are proportionally fewer atheists in penitentiary that believers. The credit crunch grew to become into in keeping with, permit's say, Bush's enhance/bust inflationary financial equipment (the banks lent an a million% interest and now it somewhat is extra like 5%, due in all possibility to the fed's wanting to quash inflation in a severe enhance financial equipment, so the mortgagees are actually stumped on the better costs of interest), and the irresponsibility of the avericios banks, and the naivete and shortsightedness of the debtors.. If human beings studied extra economics fairly than bible, nicely issues could be better for useful. "In God we have faith" on the dollar? nicely, that may not get you very a techniques in any respect.
2016-10-31 00:03:20 · answer #4 · answered by castronova 4 · 0⤊ 0⤋
They are not related. The real estate bubble was caused partly by greed and partly by people investing who should not, and partly by lending organizations lending money they should not have and partly due to the law of physics that says what goes up must come down.
2007-05-13 13:55:28 · answer #5 · answered by TAT 7 · 0⤊ 0⤋
not quite. Fed's printing presses kicking out the bucks so fast that they no longer report on the money, dollar value goes down (supply/demand/debt) have to pay more interest to attract those still willing to invest, and when interest high, values of houses drop if total cost of house is unaffordable
unemployment numbers look good on surface, but, if so, why such high foreclosures?? Far as I know, it's usually when people lose jobs that they lose house. More foreclosures, more houses on block, cheaper..more supply, have to drop prices, people less likely to speculate on making money on realestate.
It's not ending the war, it's admitting to the fiscal crisis created as result of putting war cost on credit card
2007-05-09 15:12:35 · answer #6 · answered by dan b 3 · 0⤊ 1⤋
Your premise is completely unsupported, but to answer your question:
No but failing to address global warming will.
2007-05-09 15:22:09 · answer #7 · answered by sunny d 2 · 0⤊ 0⤋
chi-guy tax cuts work too, war doesn't work as good as it used to.
2007-05-09 15:28:14 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Yes. War is the only way neo-cons know of to boost the economy.
2007-05-09 15:08:59 · answer #9 · answered by Chi Guy 5 · 2⤊ 5⤋