Federal Reserve warns Americans off housing
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|Wednesday, 25 August 2010|
Making headlines today, a member of the United States’ Federal Reserve has warned Americans to stay away from property as an investment.
According to The Wall Street Journal, Kansas City Federal Reserve president Thomas Hoenig said that while the economic outlook was improving the battered housing market was no place for Americans to invest their cash.
“If the American people are looking at the housing market to be their investment opportunity, I think they are making a mistake,” he said.
Mr Hoenig said America faced an excess of supply that had been created by providing “nonsense” finance.