I am kind of in the same boat as Scarlet. Those who continue to bang the drum that the housing market cannot be manipulated in any manner regarding inventory, bank bailouts, stimulus, credits, and whatever other tricks are needed obviously have been out in the lobby the past 4 years while we have watched the hocus pocus show.
Alternately I do agree that the ONLY way that I see pricing coming down to reasonable levels is with a substantial rate hike. To me this will not cause a foreclosure tsunami as much as it will simply price to many people out of the market causing a slack in demand. A nice byproduct may indeed be more foreclosures but the govt has already proven they can deal with that effectively.
