The motivation, methods, and economic effects of artificially high real estate Prices in the United States 2009 to Present

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dc.contributor.authorWhite, Gerard
dc.date.accessioned2016-03-30T01:13:43Z
dc.date.available2016-03-30T01:13:43Z
dc.date.issued2015
dc.description.abstractBy purchasing mortgages backed securities in default from banks in exchange for cash, and manipulating interest rates through its bond buying programs, the Federal Reserve has not only stemmed the drop in housing prices, but also inflated housing prices by manipulating supply and demand mechanics. In the short-term, quantitative easing 3 succeeded in stopping the steep fall in U.S. housing prices but long-term, consequences are on the horizon. Debt financed quantitative easing programs successfully created short-term housing price inflation at the expense of long-term prosperity. The long-term consequences of quantitative easing will likely occur shortly after quantitative easing ends and interest rates are allowed to rise. This paper explains the process of how the Federal Reserve (USA) has successfully manipulated housing prices, temporarily restored consumer confidence in the American economy and finally, projects what will happen when interest rates eventually rise. Free market forces determine prices, and inevitably the housing market faces a major downward price correction.en_US
dc.format.extent17 pagesen_US
dc.format.mimetypeapplication/pdfen_US
dc.identifier.citationInternational Research E-Journal on Business and Economics 1, 1 (May 2015), 22-36en_US
dc.identifier.urihttps://repository.au.edu/handle/6623004553/17843
dc.language.isoengen_US
dc.subjectFederal Reserve housing bubbleen_US
dc.subjectMortgage backed securitiesen_US
dc.subjectQuantitative easingen_US
dc.subject.otherInternational Research E-Journal on Business and Economics
dc.subject.otherInternational Research E-Journal on Business and Economics -- 2015
dc.titleThe motivation, methods, and economic effects of artificially high real estate Prices in the United States 2009 to Presenten_US
dc.typeTexten_US
mods.genreJournal Articleen_US
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International Research E-Journal on Business and Economics : Volume 1 Issue 1 (May 2015)