09-25-2008, 01:43 AM
There's no political will for dropping house prices in an election year.
No one wants to be the one to tell a California homeowner that their home which sold for $250,000 in 1999 still is worth no more than that today, while zillow shows a "zestimate" of $450,000.
No new taxes in an election year, but monetizing a trillion dollars worth of bailout will do wonders to raise domestic price levels enough to stop declines in the price of residential real estate.
Though I'm not looking forward to spending 9 bucks for a gallon of milk.
No one wants to be the one to tell a California homeowner that their home which sold for $250,000 in 1999 still is worth no more than that today, while zillow shows a "zestimate" of $450,000.
No new taxes in an election year, but monetizing a trillion dollars worth of bailout will do wonders to raise domestic price levels enough to stop declines in the price of residential real estate.
Though I'm not looking forward to spending 9 bucks for a gallon of milk.