June 1, 2012
Sound bites from NAR’s 2012 Midyear Legislative Meetings in Washington, D.C.
Dr. Lawrence Yun, Chief Economist for the National Association of Realtors:
- The best way to describe Greece is to quote Margaret Thatcher, “Socialism works until the money runs out”. Greeks retire at 55, the Germans retire at 65. Greece is looking to Germany. Germany wants to save the Euro but not the Greeks. Predicts that Greece will be pushed out. They’ll have an immediate fall in their standard of living and it will be a wake-up call for Italy and Spain.
- The States scoring the worst in the U.S. are Illinois, California, Nevada, Michigan and Rhode Island. Illinois or California will fail first unless they shape up, and there’s little chance they will due to voter mentality.
- The Federal Reserve is saying the interest rate will stay at 0 through 2012. Why? Because they’ve run out of options. They’ll have to raise rates before the end of 2014, not 2013, but early to mid-2014. Apartment rents are accelerating and that will force their hand. Rents are one of the biggest factors in core inflation.
- We’re facing a fiscal cliff on January 1, 2013, if no new legislation. Strong tax increases and deep cuts to the military and domestic spending will result in 3% being shaved off GDP growth which is currently at 2%. Do the math – recession.