[FromLori]

ping

related

http://www.calculatedriskblog.com/2009/12/government-housing-support-update.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+CalculatedRisk+(Calculated+Risk)&utm_content=Google+Reader

[Nervous Tick]

>> Good news for homebuyers

Propping up home prices at bubble levels is not necessarily so good for home buyers. Home SELLERS, maybe.

If the government would let the market work, home prices would fall 25% to 40%, where they SHOULD be. Now THAT would be good news for home buyers!

[PGalt]

Great post! Thanks Lori. It looks like a lot of the smaller FED/TREAS programs are expiring soon. The emergency fix-a-flat slime used in the housing blowout did its job. We are now riding on 4 donuts and have miles to go before we get our cash for clunkers, or will it be ameros for abodes. /sarcasm

[mbs6]

I was just commenting to my brother the other day that unfortunately the market distortions which caused housing prices to become artificially inflated and then crash are still in place. It appears there are even more market distortions than I knew about. It does not surprise me. As long as government meddles in any market, housing or otherwise, expect this type of volatility and mess. You cannot engineer the market to better effect.