Fannie and Freddie Stagger On as Troubled Wards of the State - WSJ.com
There's no longer any question as to whether the US housing market has reached clearing prices. It obviously hasn't with all the artificial support it's being given!
One open question of course is as the economy is starved by Democratic entitlement programs for the resources to create economically competitive and viable long-term jobs, will the housing market follow the economy down in nominal terms or real terms?
Nominal, because if the Federal Reserve has to start buying Treasury paper to support all this borrowing in the face of higher interest rates, will inflation push prices up - even if in real terms housing becomes even 'less' affordable?
Certainly a subject being kept as far away from public discourse as possible by the politicians (of both parties) and the press (for appearing too negative).
Tuesday, February 9, 2010
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