Bush's fiscal stimulus - will it work to avoid recession and if it does, at what cost.

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Bob Chapman on January 18, 2008, 4:57 PM

Home prices doubled nationally since 2001, while incomes increased 15%. When home prices drop 40-50%, maybe we’ll be ok. But the “new” rules will be like the old rules – buyers will need 10-20% in cash for a down payment. This amount of money takes time to accumulate. We’re now between a rock and a hard place. Only home sellers can get us moving forward, but alas, they can’t lower their asking prices. They refinanced and lived of their homes “increasing equity”.


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