Sounds familiar. The fed lowers interest rates to the
point that people that planned to wait to buy a house in 2-3
years when they could afford, decided they couldn't afford to
wait. With all those housing sales pulled forward, by
the time the housing crisis started everyone who wanted a
house had already bought one (not to mention the ones that did buy
found out the hard way that they really couldn't afford it).
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Cash for Clunkers
Cash for Clunkers
Posted by mkrmdz on 31st of Jul 2009 at 12:30 pm
Each billion sells 222,222 cars which is nice. Are these new sales are just pulling forward sales that would have occurred anyway?
Heavy discounting andrebates in all sectors is training customers to wait for the sale.
Once the program is exhaused, sales will resume at run rate volumes until the next deal.
Housing bubble
Posted by jd111 on 31st of Jul 2009 at 12:54 pm
Sounds familiar. The fed lowers interest rates to the point that people that planned to wait to buy a house in 2-3 years when they could afford, decided they couldn't afford to wait. With all those housing sales pulled forward, by the time the housing crisis started everyone who wanted a house had already bought one (not to mention the ones that did buy found out the hard way that they really couldn't afford it).