OD

Financials and Housing: The Outlook Remains Ugly

Very selective in the data you use, but only time will tell.

What I will say, is that econ 101 is an introductory class for a reason. Try and think past the whole idea of "when there's excess supply prices can't stabilize". Think of it this way: if you can buy a house with a 6.5% mortgage and rent it out at a 10% yield would you buy it?

Ok Ok you say, so maybe the buyers should ask for an even higher yield because the sellers are hamstrung and have a lot of supply to get rid of. This is only true if you there are a few big buyers and isn't true when you have individual investors running around all trying to get a sweet deal for themselves. There is no cooperation at these auctions you really need to go to ground zero and take a look at what's happening. Game theory... I think that was a few steps above econ 101.