Surprised At The Wrong Thing

Even with the US federal government giving away free money from heaven, home sales are falling off. The real estate industry says it is because they are not giving away enough free money. I say it is because the supply of homes is greater than the supply of people willing to strap themselves to huge debts during this period of economic depression. They are surprised that people are not jumping on board because of an effective 4.5% price reduction, during a time when prices are up 2.7%.

To restate: The government is giving a 3% discount on homes, paid by the taxpayers of America, and the People are still buying fewer homes. The real estate agents are surprised that the demand is falling. I am only surprised that demand is falling while the homebuying tax credit is still being given. Note that this is a TERRIBLE sign for the state of the USA's economy. The housing market is set for a mini-crash (a.k.a. a market correction) when the credit expires. If it is allowed to expire. They have renewed it once, and the keynesian clowns are making noise about renewing it again. Note: this helps no one but the real estate agents. The people who should be renters, who buy a home, are strapped for cash. If you don't believe it, drive through a a new housing development and see how many homes have bedsheets (or nothing) hanging in the windows instead of decent curtains. When these people put themselves under a fresh mortgage debt, it doesn't make them participate in the economy more, it makes them go bankrupt faster.

But what do the real estate agents and banksters care about that? Your loan will have been sold off to Fannie or Freddy long before that, and their cut will already be securely in the bank!