Saturday, October 01, 2005

IMF and housing

In this speech by the president of the IMF, he mentions the risks of housing prices twice. It's quite bizarre that the IMF is so concerned about U.S. asset prices. Obviously they understand that the world economy is being pulled along by the American consumer, who is getting his purchasing power from leveraging his rising asset prices. Logically, they are concerned that falling asset prices will have the opposite effect.



Post a Comment

<< Home