THIS PROVES IT: The Obama Administration Is Still Clueless About House Prices

Publié le par revivall

Ligne bleu: Prix des maisons - Ligne verte: coût de la construction -
A long terme, le prix des logements se stabilisera. Selon le New york Times, le gouvernement Obama, qui n'a aucun économiste en son sain, reconnait qu'il y a un danger mais ne comprend pas la bulle immobilière!
Le prix de l'immobilier fait à l'échelle nationale est encore à 10-15 pour cent au-dessus de leurs niveaux tendanciels.
Shiller House Prices


Long-term real house prices (inflation adjusted) -- blue line

The NYT implied that the Obama administration, which includes not a single economist who recognized the danger of the housing bubble, still does not understand the bubble.

According to the NYT:

"the Obama administration, as well as the F.D.I.C., sees any broad settlement with the servicers [over improper foreclosure actions] as an opportunity to do more than just fix the foreclosure process. They want to stabilize the housing market, where prices are continuing to decline, and try to help bolster the economic recovery."

Actually nationwide house prices are still 10-15 percent above their trend levels. The housing vacancy rate, while down somewhat from its peak, is still far higher than any pre-bubble level. In other words, the Obama administration should fully anticipate that house prices will continue to fall. There is no obvious reason to want to prevent house prices from returning to more affordable levels.

Unfortunately the piece does not point out the absurdity of the position attributed to the Obama administration. Nor does it identify any of the officials holding this view so that they can be subjected to the ridicule they deserve.

Publié dans Economie

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