Most of the experts I hear and read say that it will take at least three years for home prices to rebound. The president says it will take a year.
If the president says a year, I think it will be at least three years.
There’s tremendous uncertainty about what Barack Obama will do. We’re on our third year with him. American businesses are frozen. They have no idea what he’s planning. Whenever Obama talks, it sounds like his first instincts are always to go left and to take more money away from America’s most productive citizens.
Should we wait for the Federal Reserve to come to the rescue with quantitative easing III? That won’t happen.
He said, without getting specific, that the administration was mulling ways to encourage banks to resume lending. Companies are more profitable than ever, he said, but are hoarding cash instead of investing it. He said banks that are in the financial clear also aren’t lending as freely as they had before.
He said growing the economy overall will trickle down to the housing sector, but that it will take time.
“I’ll be honest with you, when you’ve got many trillions of dollars’ worth of housing stock out there, the federal government is not going to be able to do this all by itself, government is not going to be able to do this all by itself,” Obama said. “It’s going to require consumers and banks and the private sector working alongside government to make sure that we can actually get the housing moving back again.”