Martin Wolf: Supporting high house prices is bad policy

On January 14, 2009, In Credit Bubble, Mean Reversion, By Chuck Ponzi

I think the video speaks for itself:

While he’s not a policy maker, having more media outlets understanding why high housing prices are putting a brake on our economy is critical to getting past the downturn.

 
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3 Responses to “Martin Wolf: Supporting high house prices is bad policy”

  1. Ditech Home Loans says:
    January 15, 2009 at 2:11 pm

    The price bubble was inflated with the help of loose underwriting guidelines, allowing people to buy homes who should have been declined for a mortgage. Now that most lenders have returned to traditional underwriting, it’s a matter of time for housing prices to drop to normal levels based on market demand, which is driven by qualified borrowers.

  2. Real Estate Girl says:
    January 19, 2009 at 5:04 pm

    This is a great video and he does offer some great advice, we should all be using, thanks for sharing.

  3. Orlando says:
    February 11, 2009 at 5:11 am

    There is $500 billion in Option ARM’s that will be resetting interest rates and/or reached 125% cap on loan to value ratio very soon.

    I believe that we will see some severe declines in housing values in next 12 months.



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