Industry NewsMarkets & Economy

‘Just let housing go’

Commentary: Taking stock of housing market woes
Published on Sep 10, 2010

The Fed's Beige Book said the obvious: "Continued growth ... mid-July through the end of August, but with widespread signs of a deceleration." Not double-dip, not yet. In the absence of fearful dippers buying bonds, the 10-year T-note rose to a one-month high 2.8 percent, although doing no particular damage to mortgage rates, still near 4.5 percent. A great many people now write about housing, many of the strongest opinions held by people who gained their knowledge by living in a house, and driving past other ones. The new rage: "Just let housing go." These people do not seem to remember the benefits of letting Lehman go, the simple life without banks and their deposits. The most common error among nouveau experts is to confuse housing with the stock market. The "let it go" crew insists on this sophistry: When home prices go low enough, buyers will return. Too many sellers of IBM stock, and down the price will go to a value attractive to buye...

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