[quote=davelj]I’m hoping that this is political rhetoric on his part and that he understands that values are going to continue to decline until they are in line with incomes and rents no matter what the govt. does. And that all of this “raising home values” baloney is really just referring to the govt.’s attempt to keep prices from falling too far below the mean reverting trend (which may or may not be effective). He simply can’t be that stupid.[/quote]
I like a lot of what he’s done in other areas, but at some point we have to quit making excuses for his house price support policy. He says very clearly that he wants to keep home prices high. He puts into his administration’s key economic posts people who are enthusiastic supporters of the economic theory that (a) home prices should go up a lot more than they go down and that (b) people who bet on (a) with other people’s money should get lots of breaks on the way up and on the way down.
