For those of you who are looking for some sanity in the real estate market, do not expect it right away. Free markets tend to have quick and painful corrections. Once government gets involved these corrections tend to linger as the marketplace has to assess the effects of new legislation that typically arrives after the worst of the problem has passed.
So when a President in his last year in office states on his way back to Washington that one of his major priorities is solving the housing crisis with the help of a divided Congress my advice to the housing market is…
Watch Out Below!
Anything that the government can do at this point is to muddy the waters and add additional costs to the process. Sure some may eventually be helped but for the majority there will be another layer of bureaucracy and inefficiency into the marketplace.
In an impromptu briefing aboard Air Force One as Mr. Bush returned from his Texas ranch, top communications adviser Ed Gillespie told reporters that the president wants Congress to do more to “help make the market more stable.” The administration sees “an opportunity for bipartisan consensus” on a housing initiative, despite the feuding that erupted last year between the Republican White House and the Democratic House and Senate over issues including the Iraq war, health care, and spending for parks and museums.
Shoring up public sentiment on the economy — especially the battered housing sector — could be vital to staving off a recession as Mr. Bush enters his last year in office. Pollsters say many people who aren’t directly affected by rising defaults on subprime-mortgage loans are feeling the effects anyway, as they see the values of their homes drift downward. via the WSJ.com.
No related posts.
{ 1 trackback }