Cut interest rates to save the U.S. economy is the key property tax is useless.

<P> The past these days, never led Wall Street firms, rocked the United States dominated the global economy over the past status. .The emerging monetary and fiscal policies that caused the market a lot of suspicion. .Using traditional methods, this would have been beyond the conventional economic crisis? .</ P> <P>: http://finance. In the past, whenever the U.S. economy face problems, policy makers always resorted to a lot of prescription, the Federal Reserve to cut interest rates will always inject the way to stabilize the banking system .before the United States Government will participate in the corner, the implementation of tax cuts and other policies. .However, this time of economic recession in the United States has not the past, the old method does not apply to today's situation already. .The first is the red light of the U.S. property market. .</ P> <P> the historical experience of the past, the U.S. housing market led the rise and fall many times in the economic recession and recovery. .But today the number of American over-supply of new homes, might spend a year to return to equilibrium, and it is in inventory and sales under the premise of sustainable and stable. .</ P> <P> Unfortunately, the default number of events continue to lead the housing downturn, housing inventory remains high. .At the same time, housing sales because of high prices, the credit crunch and appears popular low. .U.S. out of the doldrums of the secondary real estate market, I am afraid not so easy. .</ P> <P> Irwin Kellnery said the low interest environment, the crisis in the property market unlikely to be reversed. .One important reason, the policy of low interest rates and can not stop the mortgage industry that the future development of higher interest rates, Furthermore, As mentioned above, because the tight credit market, banks increasingly reluctant to lend, the borrower wants to .ability or willingness to borrow is also greatly reduced. .</ P> <P> not to mention the government enacted prior to the freeze interest rates, and cut interest rates as the policy is quite unsatisfactory for three reasons. .First, it had better be careful for homebuyers, it is not fair. .Secondly, it will produce a moral hazard (moral hazard) concerns whether the Government stands ready to make the wrong decision for investors clean up the mess. .Third, equal to the open rules of the game of government intervention in the market precedent. .</ P> <P> known to stimulate the economy is more tax cuts will do little unless the government immediately organized to revitalize the private sector spending power, otherwise the consequences may be just the people to get money to pay loans, or deposit .their savings account. .In order to improve consumer spending, the Government should prescribe the right remedy for unemployment benefits, or in the near future these people will not get real help. .</ P> <P> Irwin Kellnery also called for, some basic principles that the Government should not forget. .First of all, inflation is a monetary phenomenon, but also through the Fed's easy money policy, combined with soaring commodity prices has been caused. .Reduce taxes and increase consumer spending, means that the U.S. government may lend more money, if it is through the financial markets, rising interest rates will push the possibility, and if it is through the Federal Reserve, the money supply will grow .faster. .</ P> <P> But in any case, Irwin Kellnery insisted decline in U.S. home prices fell at least the level of balance, the approximate reduction of 25%. .The faster house prices fall, the faster the recovery of the property market will boom. .The real estate mortgage-backed securities (MBS) to be able to get faster revaluation, then the bank loan market, will also be faster to revive, and finally combine the power of these help, only enough to save the brink of recession in the U.S. economy. .</ P>.