After April 30th Housing Stats

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Interesting comments coming from Redfin this morning.

“Generally in the past few months, Redfin’s traffic has enjoyed double-digit percentage-point gains in traffic. But if you compare traffic on Monday, April 26, before the credit expired, to Monday, May 3, after the credit expired, the difference is stark and uniform: an 8% drop in one week.”

[Arraya]

[quote=DWCAP][quote=qwerty007]If the government is not solely concerned with the propping up home prices, so much as the effect it has on the overall economy,[/quote]

There is where your post has a problem. I agree they shouldnt care, but they have directly linked home prices with economic gain, if only in their minds (let alone their policies), and will do anything to protect and continue the gains observed.[/quote]

At least part of this is a systemic dependancy on home prices being at a certain level. For one, a huge portion of pensions depend on trillions of MBSs that were sold as AAA investments world wide. I know a large number of corporations bought investment vehicles depending on RE values as well based on fraudulent ratings. It wasn’t only FBs that drank the kool-aid. Letting RE prices fall would probably trigger a “tsunami” of lawsuits along with exposing the insolvency of the whole banking system and exacerbate the credit contraction, which would reinforce the default feedback loop.

[Arraya]

[quote=DWCAP][quote=qwerty007]If the government is not solely concerned with the propping up home prices, so much as the effect it has on the overall economy,[/quote]

There is where your post has a problem. I agree they shouldnt care, but they have directly linked home prices with economic gain, if only in their minds (let alone their policies), and will do anything to protect and continue the gains observed.[/quote]

At least part of this is a systemic dependancy on home prices being at a certain level. For one, a huge portion of pensions depend on trillions of MBSs that were sold as AAA investments world wide. I know a large number of corporations bought investment vehicles depending on RE values as well based on fraudulent ratings. It wasn’t only FBs that drank the kool-aid. Letting RE prices fall would probably trigger a “tsunami” of lawsuits along with exposing the insolvency of the whole banking system and exacerbate the credit contraction, which would reinforce the default feedback loop.

[Arraya]

[quote=DWCAP][quote=qwerty007]If the government is not solely concerned with the propping up home prices, so much as the effect it has on the overall economy,[/quote]

There is where your post has a problem. I agree they shouldnt care, but they have directly linked home prices with economic gain, if only in their minds (let alone their policies), and will do anything to protect and continue the gains observed.[/quote]

At least part of this is a systemic dependancy on home prices being at a certain level. For one, a huge portion of pensions depend on trillions of MBSs that were sold as AAA investments world wide. I know a large number of corporations bought investment vehicles depending on RE values as well based on fraudulent ratings. It wasn’t only FBs that drank the kool-aid. Letting RE prices fall would probably trigger a “tsunami” of lawsuits along with exposing the insolvency of the whole banking system and exacerbate the credit contraction, which would reinforce the default feedback loop.

[Arraya]

[quote=DWCAP][quote=qwerty007]If the government is not solely concerned with the propping up home prices, so much as the effect it has on the overall economy,[/quote]

There is where your post has a problem. I agree they shouldnt care, but they have directly linked home prices with economic gain, if only in their minds (let alone their policies), and will do anything to protect and continue the gains observed.[/quote]

At least part of this is a systemic dependancy on home prices being at a certain level. For one, a huge portion of pensions depend on trillions of MBSs that were sold as AAA investments world wide. I know a large number of corporations bought investment vehicles depending on RE values as well based on fraudulent ratings. It wasn’t only FBs that drank the kool-aid. Letting RE prices fall would probably trigger a “tsunami” of lawsuits along with exposing the insolvency of the whole banking system and exacerbate the credit contraction, which would reinforce the default feedback loop.

[Arraya]

[quote=DWCAP][quote=qwerty007]If the government is not solely concerned with the propping up home prices, so much as the effect it has on the overall economy,[/quote]

There is where your post has a problem. I agree they shouldnt care, but they have directly linked home prices with economic gain, if only in their minds (let alone their policies), and will do anything to protect and continue the gains observed.[/quote]

At least part of this is a systemic dependancy on home prices being at a certain level. For one, a huge portion of pensions depend on trillions of MBSs that were sold as AAA investments world wide. I know a large number of corporations bought investment vehicles depending on RE values as well based on fraudulent ratings. It wasn’t only FBs that drank the kool-aid. Letting RE prices fall would probably trigger a “tsunami” of lawsuits along with exposing the insolvency of the whole banking system and exacerbate the credit contraction, which would reinforce the default feedback loop.

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