Mortgage & Loan: "The Worst Is Over"

"Everything's coming up roses..."

So says White House hack shill Edward Lazear when asked about his forecast for the housing slump:

Of the housing slump, Lazear said, "it looks like the precipitous decline that we saw earlier is not going to occur in 2007."

Given the timetables for how these things work, we are only now seeing the effects of market faltering from six months ago, so it will take at least until mid-2007 for any real indications as to a resurgence of housing's strength. So I wouldn't break out the bubbly just yet.

Bonddad has a roundup of homebuilders' failed prognostications and diminished outlooks, much of which I have covered myself. All of these guys claimed better days ahead, but they're still feeling the pain. Much like Lereah and his unqualified hackdom, this stuff is wish fulfillment--trying to tell the market everything is ok, in the hopes that they can actually make it so.

Posted at December 21, 2006 12:37 PM

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"Everything's coming up roses..." So says White House hack shill Edward Lazear when asked about his forecast for the housing slump: Of the housing slump, Lazear said, "it looks like the precipitous decline that we saw earlier is not going to occur in 2007." Given the timetables for how these things work, we are only now seeing the effects of market faltering from six months ago, so it will take at least until mid-2007 for any real indications as to a resurgence of housing's strength. So I wouldn't break out the bubbly just yet. Bonddad has a roundup of homebuilders' failed prognostications and diminished outlooks, much of which I have covered myself. All of these guys claimed better days ahead, but they're still feeling the pain. Much like Lereah and his unqualified hackdom, this stuff is wish fulfillment--trying to tell the market everything is ok, in the hopes that they can actually make it so.