here's what bernanke needs to do to stop falling home prices. It is so easy. 1. Set a target price for new homes 10% below current prices to allow for prices to fall further. 2. crank up the gold price 3. commodities follow, because all commodities are linked to gold. 4. keep cranking gold until commodity input prices plus labor = target price. There is no profit at this price. 5. housing now has a floor.
Done. Balance is restored and gold is repriced to what it should be. This isn't rocket science people.
Problem we have at current housing prices, there is still a profit. Retards are still building houses adding to the glut. Houses are still overpriced. We need to get rid of profit motive by increasing commodity costs dramatically.
yes I know that, and I know its not easy. But the pain has to equal the phoney gains. You do it very quickly and convincingly to make sure everyone understands there is a floor to falling prices and you start from there.
Otherwise, let housing prices drop for many more years. I have no problem with that either, I own a paid off small house.
It is reported that there is massive fraud in the $8000 new home purchase fiasco. Notice that foreclosures are being ruled impossible, due to the bundling that they did... no way to trace the "real" lended... Judges ruling in favor of the buyer.