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Kane Realty Corp. CEO John Kane on the factors holding back consumers from buying homes.
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-- -- -- -- -- It was cheaper.
To not by -- or to buy because nobody is buying.
McCain realty CEO.
And Romney running campaign fund risers says that Americans are just plain losing confidence in the economy that might very well be the case John but the dynamics had -- -- -- -- to be aren't reading was a better option.
Now for whatever reason in the may have crunching the numbers buying it is and that -- To be a good predictor not over time for real -- you disagree.
Well I don't know that I disagree I think the timing devised so when -- for some people but I think with the unstable economy and the uncertainty of the future of the economy and the uncertainty of the election.
And where will be going next I think a lot of people are very risk -- this point in time.
-- is certainly a safer place today than -- ownership and also homeownership.
Tomorrow may not be what it has been in the past and many of us know people -- -- and times and actually lost their equity and so I think.
The nature of things today is very different an idea was twenty years ago.
-- Obama switching gears a little -- -- in light of the Fed and what it did today and and this is the want to -- -- among many things and the Fed's announcement.
We're gonna keep short term interest rates right where they -- right to 2015.
And and that's a long -- a long commitment.
And that's been a certain period -- absurdly low interest rates CU.
You've got to wonder why more.
People aren't responding you're taking advantage of them or their underwater and -- can't take advantage of but did giving.
You know homes away.
At that rate right and nothing's that.
Well I think that's true but you know you can -- still got a very high unemployment right all across the country.
So -- a lot of people they can qualify and the qualify qualifications for people who -- the underwriting is excruciating.
Even though the rights -- low is very difficult for they would qualify for -- You -- -- -- zone now that may be.
Banks given the assurance that the Fed is gonna be doing this for an extended period of time open up the spigot lend more what what changes and -- Well I think we certainly need for that to happen but the underwriting criteria -- -- way too far the other way it was it was obviously.
Too loose and they and that in the get ten years ago the last six day ten years but has -- far too far the wrong the other why is too is just.
Is too difficult to qualify are for a one on the underwriting is unbelievable and the documentation is overwhelming -- -- Howie it's comfortably the other with a note got to.
Every document to go but at John let me step back and look at politics I know you're an advisor your to Romney but I don't wanna get too political here but.
I do -- -- -- -- that Mitt Romney has gone on record saying he would like to replace the Fed Chairman when his term is up.
He's not been very complimentary about Ben Bernanke.
Lo and behold I see the third.
Quantitative easing and his many years.
Virtually all of it under this president.
Do you feel -- Ben Bernanke is working for the reelection of Barack Obama.
You know and it's hard to -- a -- -- -- -- them qualified to really speak on that issue.
They certainly I think continue to he's just for the sake of easy is it we're gonna pay that price at some point -- are gonna have inflation from.
Because worries me and are not giving again to political I don't wanna put unit comfortable position as.
When among other things Ben Bernanke says he looks at the markets he looks at people in their paper wealth effect that again simplifying paraphrasing here.
Then he's entered the market.
Has something he looked set to judge monetary policy.
I don't know if that's such a good idea you know.
We're not tend to agree with -- -- you know whether or not he's done the right thing and I think probably disheartened he's looking at the statistics and all they.
The data that he -- in front and I'm sure resume what he thinks is in the best interest of the country.
Do you think this is gonna create a little boomlet here I mean that no market response today these things tend to be short -- but we don't know.
That that this is going to be the wind at that they economies that.
I don't think so I don't optical have very little effect on the economy --
