Contrary to Ara Hovnanian

Reader comment on: Understanding the Housing Crisis

Submitted by Pearl Pullman (United States), Oct 12, 2008 10:30

Your statement that " The housing slump of 1974 made it clear that...lowering interest rates again...would be simply throwing more money at a problem that was created by cheap and easy money. " were contested 10/11/08 by another NJ entrepreneur, Ava Hovnanian on FOX.

He said "In 1975 major recession, market down 40-50%, and a major housing problem...Gov introduced significant tax credit of $12,000 & subsidized mortgage rates, not just the rates the feds control. Thirty year mortgage rates were brought down from 9 to 7.5% Housing market rebounded, economy came back because housing has such a multiple effect, stock market came back."

Who can we believe?

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