Same way the Gov. stimulated the economy in the great depression.

Most the time it just stimulates complacency and disempowers those who are already struggling by giving them another security blanket.

On the positive side, lower interest rates can lead to increased borrowing and spending, which can stimulate economic growth.

The is a shot in the arm and yes RE values will inch up and stimulate jobs, to a point.

Although government measures are in place to stimulate business lending, without perfect credit and cash reserves, most business owners are just passed over by their bank.

@Jaysen Medhurst,The missing piece in your home buying scenario is the dearth of lending.At the surface, it may appear that low interest rates and down payments are stimulating the market, there's actually another factor at work: the crash itself.

During the end of the long-term debt cycle, the Fed will find it harder and harder to stimulate the economy with money printing, as the spreads between borrowing costs and asset returns get smaller.

@Tyler Lee rates are manipulated by the federal reserve to help stimulate or cool the economy.

I agree with the points you list, but factors outside of just housing can stimulate or deflate the energy behind the factors you list.

and I agree with @Jay Hinrichs, actually stimulating in a way that I feeling I am gaining experience and learning things!