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Central Banks And Housing Prices: A Tale Of Three Countries (US, Germany and Japan)

This is a syndicated repost published with the permission of Snake Hole Lounge. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

The US Federal Reserve, the European Central Bank (ECB) and Bank of Japan (BOJ) have all been hyper-active in recent decades. But the low-rate policies have not produced the same outcomes.

The US, after home prices declined in 2008 and 2009, took a while to recover. Only in 2012 did US home prices begin to rise again.

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Germany’s house prices also fell, but started rising again in 2010.

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Japan is a different story. Despite staggering increases in asset purchases by the BOJ (and negative lending rates), Japan has experienced a decline in housing prices.

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So, The Fed’s Yellen, ECB’s Draghi and BOJ’s Kuroda have had different easing experiences.

My Kuroda! 

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