The liquidity trap

If you think that lower interest rates would reinvigorate demand, consider this quote from Bob Campbell in the San Diego Real Estate Timing newsletter:

"When an asset like real estate becomes overvalued, even if you drop interest rates to zero, you can't force consumers to borrow more, because they've already borrowed too much. Nor can you force lenders to lend, because they're already puking on 'bad paper.' It's called a liquidity trap."

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