I am about as good at predicting the housing market as I am at predicting the financial markets… In other words – I keep trying to apply reason and sanity to a system that is manipulated in a way that I can never predict. I didn’t predict the government intervention in housing to the extent it’s happening. They’ve come up with so many creative, unpredictable ways to prop it up and reinflate – from overt stuff like the 8k incentives, to more subtle ways like free, unlimited credit to the banks which allows them to carry non-performing mortgages indefinitely.
