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Probably the price decline will continue, but in the long term, the rescue plan should help housing prices recover as (or if) our economy improves. Growth in the economy should result in lower unemployment and better wages that usually augers well for home prices. Of course, there are many factors at play, and certainly, higher oil prices mean less disposable incomes, and negatively affect prices.

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Q: Will housing prices go up or down in the shadow of the huge US bailout?
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Why not give the taxpayer his or her 49448.05 cut of that 1.2 trillion dollar bailout then let us stimulate the economy?

While this would be nice (although miscalculated, the bailout portion of the bill was $700 billion, about $21k per American), it would cause massive inflation due to a huge increase in the money supply. Just like the huge increase in the supply of houses caused housing prices to plummet, a huge increase in the supply of money would drive down the value of the dollar.


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