Sunday, April 5, 2009
Home Prices Falling
The pathetic collection of beltway zealots have pursued their crusade to make home prices "affordable", but their idea of affordability has been to depress interest rates while promoting inflated home prices. This effort to win the support of their constituency is carried out by keeping home owners happy since the increased home price ruse can continue, while making buyers more dependent on the benevolent Fed by means of their depressed interest rates. This encourages individuals to purchase their over-priced home through debt financing instead of buying a reasonably-priced home by means of personal savings.
Just the same way the laws of gravity cannot be repealed, the laws of economics can also not be repealed, as evidenced by the reality of long-overdue falling home prices.
This is a rare case where the perspective taken by the media is that of the buyer, and gives a much-needed mainstream news article that does not perpetuate the falling price fallacy.