Friday, March 05, 2010

Even With Government Incentives, The Market Rules

So you think the government can control the ecomony? Pending home sales fall 7.6 pct. in Jan - Financial Markets - It can get people to change the timing of their purchases - as cash for clunkers proved. But can it really change the market.

Although they would like to blame the weather, that isn't the whole story.
The biggest month-to-month drop was in the West, where sales fell 13 percent. Sales fell almost 9 percent in the Northeast and Midwest and 2 percent in the South.
I am sure the weather had some impact, but it isn't whaat is really scaring the Real Estate crowd.
The weather isn't the only culprit, wrote Jennifer Lee, an economist with BMO Capital Markets. "The impact of government incentives ... appears to be running out of steam, which is, frankly, a scary thought," she wrote.
Welcome to the real world, kid, where the king cannot command the tides, nor the markets.

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