This is Argyn's blog. I comment on topics of my interests such as software, math, finance, and music. Also, I write about local events in Northern Virginia, USA and all things related to Kazakhstan

Friday, February 20, 2009

Let housing find its clearing price

by James Saft
Fri Feb 20, 2009 11:35am GMT

Prices of housing in the U.S. were driven too high by too much leverage even as supply increased. Let's accept that, allow prices to fall, the banks to fail and start again on a new stable footing.

I couldn't agree more. Full correction of home prices is not too far away, imho. We're almost there. So, there's no point in trying to artificially stop foreclosures. Just let them go bust, the last batch of reckless investors.

No comments: