Friday, August 06, 2010

Fannie Mae: Home Prices To Decline Into Next Year

Fannie Mae: Home Prices To Decline Into Next Year: "Home prices will decline into next year, Fannie Mae said Thursday, reversing earlier projections that the housing market would stabilize this year.

Former Federal Reserve Chairman Alan Greenspan said Sunday on NBC's 'Meet the Press' that a so-called double-dip recession was possible 'if home prices go down.'"

The administration's housing policies have failed. Period. End of debate.

And that means the economy is not in a recovery, no matter what anybody says. I don't see how there can be an economic recovery worthy of the name unless and until the housing market turns around.

Watch for the administration to do the magic "disappearing mortgage principal" thing in order to buy some votes for the November election. But it is all smoke and mirrors and making us pay other people's mortgages in addition to our own.

What it comes down to is this: the Obama administration and the congressional Democrats who are running this nation have no idea what to do about the housing market and that means they can't fix the economy. Maybe nobody can, but that hasn't been proven yet. We do know for sure that this crop of Democratic leaders can't. I'm no fan of the Republicans these days, but where else are the voters supposed to turn?

1 comment:

Fred Pilot said...

But the housing market won't improve until general economic conditions improve. It can't be viewed in isolation as a single indicator of economic activity. Other parts of the economy have to generate jobs and income to pay for homes.