SD I am also irritated with the gov’t intervention, the law of unintended consequences is in full swing. I think thier attempt to prop up the market and thwart foreclosures is going to hurt the market and the recovery.
By artificially stopping the repos temporarily and printing money they are driving up interest rates accidentally and reducing sales. Things were going so well before they tried to help. Those foreclosures would have been bought, people would have lower housing costs and would be spending their extra money on those houses. By grabbing ahold of the pendulum and not allowing it to swing to one side, they have eliminated it’s ability to swing back. Most importantly, they have put a lot of people, like myself, back on the sidelines to await the punishment for their good deeds.
My zip code was averaging 50 not’s a week and it has dropped to 6, the lowest in a year. New inventory is trickling in and the brisk sales of a month ago are slowing. The market was on pace to correct itself, good thing they are trying to help so it may take a decade to find the next rally as opposed to two years. My guess is that prices won’t decline as much in this quarter but sales will. Silly me, I thought the gov’t was too busy screwing up other countries to pay attention to this one, Adam Smith is laughing his butt off in his grave right now, when will we ever learn?
I should be having a fantastic week, with cleveland beating the giants last weekend and the chargers beating the patriots, they’ve got me so spun up I am not fully enjoying the season like I should be.
