June 2, 2009 "News You Can Use" $6 Trillion in Stocks Erased; Home Buyers Seeing Gains in IRAs
June 2, 2009
60 Second Real Estate & Financial News You Can Use
BOSTON GLOBE In an article posted on their website previously, the Boston Globe asked Lawrence Summers, Director of the National Economic Council, and Obama economic advisor, to comment on the recession. “On a global basis, $50 trillion dollars in global wealth has been erased over the last 18 months. This includes $7 trillion dollars in US stock market wealth that has vanished, and $6 trillion dollars in housing wealth that has been destroyed.
Inevitably, this has led to declining demand, with GDP and employment now shrinking at among the most rapid rates since the Second World War.” Summers note “markets are self-stabilizing.” He goes on to explain the stages of an economic downturn and what we can expect. “When the economy slows, interest rates fall. When interest rates fall, more people take advantage of credit, the economy speeds up, and the market equilibrates.”Self-directed IRAs can hold titles to Real Estate: Unlike traditional IRA; internal revenue codes place fewer restrictions on self-directed IRAs. As a result, people are looking to self-directed IRAs as a means of entering the real estate market at time when real estate prices are at an all-time low but bank financing is limited. For more information, visit www.WealthyIRA.com.
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