Ed Butowsky, Managing Partner of Chapwood Capital Investment Management, joins Fox News to discuss the potential impact of falling home prices and how does the economy overcome such problems.
Analysts await key figures about home sales this week after learning that existing home prices fell in April. Some experts claim that a full recovery will not occur until the housing market hits bottom and there are currently no signs of this occurring.
In addition, there are no more effective tools in the arsenal for the Fed to utilize to stimulate the economy. Things like raising taxes or raising interest rates are out of the question, so what is left to do to help this economy? Maybe lowering taxes? Until something is done, housing prices will not go any higher.
Ultimately, this impact on housing is affecting other services within these housing communities like police forces, schools, etc. As Ed points out, currently the economy and growing foreclosures are placing a cap on house values and in fact as they persistently continue to go down so do the values of these homes which is increasing the overall surplus of existing homes for sale.
A word about Ed Butowsky:
Ed Butowsky is the managing partner of Chapwood Investment Management and is an internationally recognized expert in the investment wealth management industry. Ed is also a frequent guest on other networks such as CNN, NBC, ABC, Fox News, Fox Business, and Bloomberg to name a few.
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