[quote=paramount]Since many piggs are part of the FIRE industries it comes as no surprise so many are pooh-poohing the article and notion that real estate still has a ways to fall. It’s local, it’s this, it’s that, bla bla bla.
Makes perfect sense to me: at some point market forces will overpower gov’t intervention and find true equilibrium.[/quote]
paramount, it’s very simple. Your (bolded) statement is correct with a caveat. “Market forces” are comprised of human buyers and they are different in different locations. Some “market forces” are far more dependent on “gov’t intervention” than others. Those are ARE dependent on “gov’t intervention” will have to offer less in the markets they shop in if the government lowers their loan limit that they will guarantee or pulls out entirely. The markets they DON’T shop in (because they can’t possibly qualify to buy in them) will not be affected by less government intervention.
