Barry Ritholtz asks the question.
The short selling stop-gap may have reduced the wild gyrations, but if banks are in such bad straights over the housing debacle that they are incapable of even lending to profitable businesses, then I suspect we are now going to see death from a trillion cuts.
I sold my house a while back, and right now I rent. I have heard every reason why I should be buying again, but still I rent. My friends and colleagues continue to invest in real estate, continue to say how their area is different than the rest of the country, and that appreciation is inevitable. My reasoning - house prices have been acting like bonds - interest rates went into a long decline, and Newton’s Third Law kicked in. And the external force that causes Mr. Gravity’s First Law to take affect are now on our heels.
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Posted in Thoughtmarket |
Tags: Fannie Mae, homeowners, housing, lending, Newton, prices |
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