Wednesday, August 25, 2010
The news on Tuesday that sales of existing homes fell a record 27% in July spooked the Dow to decline by a mere 133 points. I guess all of those short term tax credits and fancy programs initiated by the Obama administration to prop up prices has been essentially a big waste of tax dollars. Oh well. Another lesson in hubris, I suppose. The funny thing is that as prices go down, the more affordable housing becomes for more people which is what our government has been telling us they want and why they have spent a treasure in tax dollars to create. It turns out that if you just leave the market alone, it will sort out affordability on its own. Amazing.