[Merged] Real estate crash - yes, no, maybe?

[alanbrenton]

I wouldn't take Fed's 2014 promise too seriously.

http://online.wsj.com/article/BT-CO-...24-713887.html

Should growth in the U.S. decelerate, Dudley said the central bank can choose between extending the duration of its balance sheet, or add to it by buying more bonds. But at the same time, if the economy shows sufficient strength, Dudley said he will consider moving up the current rate-increase timeline of late 2014.

LOL. What you quoted is a joke. It's like saying I should bring an umbrella when it rains or bring my shades when it's sunny.

Unless things have changed and it's almost election time, that was one of the mandates of Bernanke et al. -- to bring down the unemployment rate. Unless increasing rates will increase jobs in the US, I'd say that talk about increasing interest rates is all lip service.

[Ceryx]

LOL. What you quoted is a joke. It's like saying I should bring an umbrella when it rains or bring my shades when it's sunny.

Unless things have changed and it's almost election time, that was one of the mandates of Bernanke et al. -- to bring down the unemployment rate. Unless increasing rates will increase jobs in the US, I'd say that talk about increasing interest rates is all lip service.

That's what all Feds statement about. It was never a definite statement as it can alter is policy based on the economic conditions.

I don't think US is going to raise the interest rate in the next 6 months, especially due to election. However, I doubt the Feds will wait until the end of 2014 to raise interest rate, especially based on the growth we saw in US economies for the last 12 months.

The inflation will start to kick in next year and Fed will be forced to raise interest rate. That's when the fun begins.