Tomorrow, Ben Bernanke is to keynote an economic conference
focusing on housing, housing finance and the economy. For BB
to talk about moving the FFR% would be a profound breach of
professional ettiquette as that is the role of the Federal
Open Market Comm. as a whole. He might reiterate that the Fed
stands ready to protect the economic expansion, but that has
already been factored in.
I am hoping BB opens an eventual wide ranging discussion on
the future for housing and how best to finance it. The
demographics are changing rapidly, with boomers looking to
downsize or find housing with more senior amenities, and the
prime buyers, aged 25 - 44, will gradually but persistently
fill with younger folks as well as immigrants. The market will
over time need to find ways to accomodate younger buyers yet
not destroy the savings of seniors wishing to simplify their
lives. I would doubt BB would carry it all that far, but this
will continue on as an important economic and social issue for
years to come, and he would do all a favor by starting to
address it.
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