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Impact of Financial Markets on Economic Stability and Growth: The Case of Sub-Prime Mortgage Lending - page 38 / 42

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1/23/2015

Jamshid Damooei, PhD

38

What to Look for in the Months or Years Ahead….Continued

With higher home prices subprime mortgage loans will be reset at lower rates and many will be phased out.

The legacy of current debacle will put some restraints on future home mortgage markets.

Federal Reserve System will be pulled between opposing views as how it should conduct its business as always.

The new boom will leave nothing but a memory of the current problems.

And we learn once again that “Economic Stability” is highly unstable.

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