The more I think about it, the more I feel that there will be some sort of government intervention to slow the bursting of the bubble.
What I wonder is *how* the government will do this if it is the case that only *some* markets are experiencing a downturn. Policy-wise, is there anything that *can* be done locally? Or is interest rates and federal tax cuts the only tool of any size? If the national housing market doesn’t collapse, then how can the federal government do anything?
Locally, what could San Diego county do to prevent the carnage? Personally, I think those working for the county wouldn’t mind prices dropping a little too – I don’t imagine they earn a huge amount of money.
