Will QE3 Save The Real-Estate Market

WILL QE3 SAVE THE REAL ESTATE MARKET? IN A THIRD ATTEMPT TO INJECT LIFE INTO THE WEAK UNITED STATES ECONOMY THE FEDERAL RESERVE REVEALED PLANS TO INITIATE A THIRD ROUND OF QUANTITATIVE EASING (QE3) The FED has announced a plan to purchase $40 billion dollars in mortgage-backed securities (MBS's) each month. This plan, with an open end date, will provide flexibility for the FED to adjust its decison based on the response of the economy from month to month. $40 Billion USA (PER MONTH) FEDERAL RESERVE SUCCESS STORIES AIG RESCUE The Federal Reserve invests $85 billion dollars in AIG in 2008 and successfully turns it into $18 billion dollars in profits. $18 BILLION PROFIT $85 BILLION 2008 ШI 2012 INVESTMENT AIG PRESIDENT OBAMA SAVES DETROIT AUTO INDUSTRY President Obama extended emergency rescue loans to the american auto industry. The move saved more than one million jobs and prevented the loss of over $96 billion dollars in personal revenue and the collapse of manufacturing in the midwest. LOW INFLATION RATE The Fed is printing money on bailouts to save the U.S. Not true. Current inflation is only one and seven tenths economy while economists are percent, a number considered minimal 1.7% afraid inflation will by analysts skyrocket (Current Level) INLFATION? DECLINING UNEMPLOYMENT The United States unemployment rate is on the decline. As of September 2012 the rate stood at 7.8% and 15,000 new jobs were created that month - figures that shed doubt on gloomy unemployment forecasts. SEPTEMBER + 1111| 115,000 NEW JOBS 2012 78% UNEMPLOYMENT The United States economy needs minimum 150,000 new jobs created each month just to balance population growth. PREDÍCTION QE3 will RECUPERATE the real estate industry with HOME PRICES INCREASING STEADILY starting in 2014. Because of the financial influx there will be job creation and unemployment numbers will continue to fall. PRINTING MONEY will cause inflation to increase and thus balance overpriced homes and create POSITIVE HOME EQUITY for underwater mortgage owners. INFLATION IS THE ONLY WAY OUT of the REAL ESTATE MESS without having home prices plummet to 1995 levels. DE3 A MortgageRefinance. Sources: BARACKOBAMA.com/ MONEY.CNN.com MORTGAGEREFINANCE.com/ONLINE.WSJ.com/ TRADINGECONMICS.com %24 %24