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The Week of Saying Never Mind

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Easing of monetary policy, a reduction in interest rates by the Federal reserve probably will not prevent a serious house prices decline says Mishkin, a Fed Governor and a Columbias University economist. And a 20% decline in prices says Mishkin in a recent paper could lead to about 2% drop in consumption spending within 2 years. See the other article on Sept 17, wsj, that a rate cut or rate cuts may still not prevent the economy from suffering from the effects of the credit crunch and the housing decline, and drops in consumer spending, decline of the dollar, leading to lower growth.


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