RealtyBaron.com : Baron Briefs: Bush Not Worried about Housing Bubble:
Okay, everyone breath a BIG sigh of relief: our leaders are not sweating the housing boom:The Bush administration is closely watching the housing boom, though so far the surge appears to be driven mostly by basic market forces and not speculation that could lead to instability, Ben Bernanke, the president’s top economist, said Tuesday.”The administration will continue to monitor” developments in the housing market, Bernanke said. “However, our best defenses against potential problems in housing markets are vigilant lenders and banking regulators, together with perspective and good sense on the part of borrowers.”Translation: “it’s called a free market…find your relief elsewhere, suckers”. Bush Said to Be Monitoring Housing Boom [Associated Press]
Suckers? I disagree with this flippant analysis. The market may seem and be out of control, hence the creative mortgage options, the occasional incentives offered by builders, downward pressure on commissions, et. al. However, when I see rentals that sell for $189,900 renting for $1075, I think that something is amiss.
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