Wednesday, May 27, 2009

The Market Could Fix Things if Government Got Out of the Way

US Apr Existing Home Sales Up 2.9% To 4.68 Mln Rate Lower costs of borrowing. Lower costs of homes. The market is finding a bottom.

Given that the bubble in housing prices was mostly a direct result of government mucking about with the market to ensure "everyone can have a home," expecting the government to fix it just seems crazy.

Now that some discipline is back in lending (and underwriting) I expect the market will equalize things in short order.

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