# Will demand for property return if rates fall



## command (20 Sep 2007)

The Fed cuts rates to boost Wall Street and the Bank of England bails out the stock market. Are they overstepping their mark. Surely their job is not to interfere in the stock market.

Given that they are having the same issues in relation to house prices and demand in both of those countries is this the autorities trying to put off the inevitable or engineer a soft landing. 

It seems as though market sentiment in Ireland has turned away from paying high prices for property. If the ECB follows the lead of its counterparts and either leaves rates as they are of lowers them what effect will it have in the Irish makret. 

If rates fell in the morning and the banks eased up on affordability again would the property market take off again, would it halt the slide in property prices or have we had a wake up call and realised that property might be overpriced.


----------



## room305 (20 Sep 2007)

command said:


> The Fed cuts rates to boost Wall Street and the Bank of England bails out the stock market. Are they overstepping their mark. Surely their job is not to interfere in the stock market.



No their job _is_ to interfere with the stock market. They wouldn't exist otherwise.



command said:


> Given that they are having the same issues in relation to house prices and demand in both of those countries is this the autorities trying to put off the inevitable or engineer a soft landing.



In their last statement the Fed even used the word "forestall". It is the ambition of each central bank chairman to forestall any recession by whatever means necessary until they vacate the seat and handover to the new guy.



command said:


> It seems as though market sentiment in Ireland has turned away from paying high prices for property. If the ECB follows the lead of its counterparts and either leaves rates as they are of lowers them what effect will it have in the Irish makret.



Very little I should think but we can always remain hopeful.



command said:


> If rates fell in the morning and the banks eased up on affordability again would the property market take off again, would it halt the slide in property prices or have we had a wake up call and realised that property might be overpriced.



History shows it is impossible to reflate a bubble once it has burst.


----------

