curtisg165

Prices Fall, Inventories Rise, NAR Spins

Maybe Yun is referring to the fact that the federal government is working to freeze many variable rate loans at their existing interest rates; not allowing resets. This will create a "moral hazard" and will certainly send the wrong message while penalizing those who were prudent enough to avoid this whole debacle. People who made decisions based on the guaranteed home appreciation that Yun and Lereah adamantly predicted will benefit; as will NAR. This will even help Wall Street to collateralize the ugly SIVs and CMOs they created so as avoid heavy losses. The home buyer who was prudent and saved will, in reality, get to pay for all this with his taxes. Heck, its the American way!