Wednesday, May 25, 2011

Why Does the NYT Want the Government to Make Housing Unaffordable? | Beat the Press

Why Does the NYT Want the Government to Make Housing Unaffordable? | Beat the Press
"Actually no; it never looked like "things were improving" to people who follow the housing market. It looked like the tax credits were temporarily delaying the deflation of the housing bubble. This delay allowed banks and investors to have hundreds of billions of dollars in mortgages, which would be underwater today, taken off their books and replaced by Fannie and Freddie guaranteed loans, through sales or refinancing."
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This blog post is by Dean Baker, who I think is a very bright guy with a record of accurate predictions. He seems to think that housing is still overpriced by historical measures.

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