This makes perfect sense to me. From Tom Dyson: “The Fed has aimed its printing press at the real estate market. The government thinks the falling real estate market is driving the recession and the credit crunch. If it can get the real estate market rising again, it thinks it'll be able to beat deflation and solve all our problems. So any signs of life in the real estate market will validate the Fed's strategy and generate a burst of optimism in the stock market. As I've been reminding you over the past month, the Fed's strategy is absurd. The best way to get prices rising again is to let them fall. The housing market needs to find the price where buyers and sellers meet. The more money the government throws at the market, the longer it'll take for prices to find their true equilibrium and the more time we'll be stuck in a recession.” The woman at left is waiting for us to act responsibly, so please hurry.
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