According to Federal Reserve staff calculations, most REO properties are in neighborhoods with median house values and incomes that are roughly similar to the medians for the metropolitan area overall.15 Moreover, these properties are not unusually far, in terms of commuting times, from where jobs are located.16 We have compared computations of the expected annual cash flows from renting properties to the discounted prices that REO property holders typically receive when selling a home.
2  BIS Review 43/2010  As regards fiscal policies, it is now essential that governments reduce budget imbalances and correct excessive deficits by the agreed deadlines. In a number of euro area countries, fiscal consolidation will start this year and in all others corrective measures will need to be in place by 2011 at the latest.