…As to HOW this $6 billion bail out of Bear Stearns by JP and the Fed will actually translate into stablizing or ressurection of home prices/values???
I can’t see how the bailing out of Bear Stearns will affect the home prices at all. It will not create more consumer confidence, nor create more job, nor will it give any of us any added money in our pockets to purchase a home.
In the very short term, the bail out of Bear Stearns stopped a possible collapse of our economy. That certainly helps real estate in the short term (real estate won’t be very popular in a collapse). However, the government is talking about using even more fiat money (money they just print out of thin air) to buy up a bunch of the bad mortgages, in another MASSIVE bailout. That would improve the foreclosure situation to some degree, at least in the short term. The only teensy weensy little problem is that the citizens of our country will pay the price for the hundreds of BILLIONS or TRILLIONS of funny money dollars through the hidden tax of inflation.
Mike