Deal Hunter, how did you conclude that the most likely outcome of all this is a massive victory for hard-core Republican political goals? I don’t care about the politics, but I can see that the Republican party’s agenda is near-dead. In November, no one thinks that either the House or Senate will go Republican. The only question is whether the character of the Republican candidate can overcome the political groundswell in favor of the Democrat agenda.
The long-term outcome of this still-emerging massive bail-out will be the same as for every other temporary expansion of government in the last 100 years – a permament expansion. From now on, home prices will be determined directly by the Federal govt’s finger on the money spigots. When next prices go down after this little event, they will have lots of new spigots to open.
