Deflating The Housing Bubble
June 19, 2006
With so many variables to weigh in on, there has been a lot of speculation going around about how Fed Chairman, Ben Bernanke, is going to fare in his rookie season. The headlines of the financial press have been filled with reports of inflation and the dollar, but what of the U.S. housing market that once demanded so much investor attention?
This week's letter is from Paul Kasriel of The Northern Trust Company. Kasriel is Senior Vice President and Director of Economic Research, responsible for producing the Corporation's economic and interest rate forecasts. He advises the Bank's Assets-Liabilities Committee as well as the Corporation's Investment Policy Committee.
Paul looks at the U.S. housing market in light of the Fed's recent actions and their effects on mortgage rates. He is in the "soft landing" camp for the recent slowdown in real estate but warns of what could happen to the market if a bubble were to burst. Now, let's take a look at this week's "Outside the Box."
John Mauldin, Editor
Outside the Box
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Deflating The Housing Bubble
The Northern Trust Company Economic Research Department Positive Economic Commentary
"The economics of what is, rather than what you might like it to be."
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