Quantitative Easing Explained for Us Plebians
The video below, Quantitative Easing Explained, is a simple, but very funny and sadly true video that explains the intended and unintended effects of the Fed's latest round of "Quantitative Easing" (QE2). I just had to share it.
In my opinion, this QE2 will result in soaring prices of basic living necessities (food, utilities, medical care, etc.) without causing the intended goal of igniting the economy and inflating housing prices. Since housing sales are now (unlike in the past) extraordinarily dependent on buyers who borrow practically the entire amount of the purchase price via loan programs such as FHA, VA, USDA, THDA and other such loan programs, housing prices are now extremely dependent on mortgage loan interest rates. If the Fed's QE2 does in fact cause significant inflation (many economists believe this will happen), mortgage loan interest rates (remember the 1970's) will also surge with the result that buyers will not be able to afford the high interest monthly payments. Therefore, it is very possible that QE2 will actually cause housing prices to deflate (i.e. decline) further. I think the possible general inflation without corresponding household income inflation will reduce the amount of money homeowners have available after paying for basic necessities. This plus a further housing price decline will create even more foreclosures, short sales and other distress sales over the next several years. See my previous blog post, The Truth About Home Prices) to get an idea of how housing prices compare to historic housing prices.
Nashville and Middle Tennessee Short Sale and Foreclosure Help and Assistance for Homeowners and Property Owners in Financial Distress. If you are a Nashville Tennessee, Franklin Tennessee, Brentwood Tennessee, Nolensville Tennessee, Spring Hill Tennessee, Murfreesboro Tennessee, Smyrna Tennessee, La Vergne Tennessee, or Middle Tennessee homeowner, property owner, condo owner, real estate investor, home builder or real estate developer who cannot pay your mortgage payments (due to losing your job, having your income reduced, illness, health problems, adverse business conditions, slow sales, loss of investment property tenants, vacancy issues, lack of funds to complete the project, feuding business partners, etc.), know that you will not be able to pay your mortgage, have defaulted on your mortgage, are already in foreclosure, or owe more than your home is worth, please contact me to discuss your options including a loan modification and a short sale (a real estate short sale occurs when the sale proceeds are not sufficient to pay off all the mortgages and liens on the property/home). I am a Nashville Tennessee and Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR, Expert and Real Estate Investor. I primarily help sellers (homeowners, property owners, condo owners, owners of high end homes and properties (estate homes, luxury homes and executive homes), real estate investors, home builders and real estate developers) of distressed real estate, short sales, pre-foreclosures, foreclosures, investment properties, failed new construction projects and struggling commercial real estate developments located in Middle Tennessee (Rutherford County TN, Williamson County TN, Davidson County TN, Robertson County TN, Maury County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN, Belle Meade TN, Nolensville TN, Spring Hill TN, Gallatin TN, Springfield TN and Mt. Juliet TN). If you do need to short sell your home or property, or you need a quick sale due to being in foreclosure, you can request short sale and foreclosure help and assistance on my website at Get Short Sale and Foreclosure Help and Assistance from a Nashville Tennessee and Middle Tennessee Short Sale and Foreclosure REALTOR, Real Estate Expert and Real Estate Investor.
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