Real Estate Stimulus Fail
For two years I’ve preached that artificial means to prop up an inflated real estate market are not permanent solutions. Obama and his economic advisors (who are gradually jumping ship) thought otherwise. Can you guess where this is going?
Sales of existing homes have hit a 15 year low. (Source) Sales fell more than 27% since June.
This is awful.
Keep in mind that these dismal sales numbers coincide with record low mortgage interest rates, which should be stimulating buyers.
There are two lessons to be learned here.
First, our government is powerless to effectively re-direct our economy. Bush and his sequence of Republican then Democrat Congressional jack-asses drove it off the cliff. The Obama team is keeping us there.
Second, if you have a Ph.D. and your field is economics, don’t waste my time with your tax credits, bailouts, rescues, and other stupid strategies. I’m better off with a Ouija board.
Now, if you have always wanted a condo in Florida that costs less than a new car, this is your time.