Duck,
Actually I agree with you. I dont think the Gov is gonna let this one get away. If they think people vote with their checkbooks, just wait till the middle class starts loosing houses in mass numbers.
I actually posted this thinking there would be more of a response. PIMCO may be right, but stories like this tend to get people talking and even small changes in perception can move markets.
I really think the FED is gonna squash rates until housing heals, the question is, what kinda price do we pay 3-5 or maybe even 10 years from now? Inflation builds, returns are worse, rates are raised, and housing is hurting again. A return to the 6.5% rates we were paying 1 year ago would be a knife in the heart, so how are we ever gonna get outa this mess? Remember inflation only really counts if it is wage inflation, and we havnt been seein too much of that lately.
