I'm always impressed how one person can so clearly interpret someone else's short one-sentence quip. (Me, with Sifton, there's a lot more meat on the bone.)
I'm talking about what had already happened for years and years with the cloaked, under-the-radar "nationalization" that facilitated (along with many other facilitators) the 2007-2009 housing implosion before the most recent unambiguous "in full daylight" nationalization. Let's just say that it's good to be a bondholder and it's less good to be a citizen.
Nothing in the future fixes that past.
For the record, I'm talking finances here. Everybody was guilty. Some more than others, but everybody was guilty.
P.S. And I know the NYT-Krugman cabal's "Fannie Freddie Phony" (google it) blog position on all this - "Maes were withdrawing from the market at the height of the bubble" (translation: massive facilitators in a major way all the way up to the height of the bubble and then they ran for cover), "the vast majority of the loans now going bad came from the private sector" (reality: those loans never would have existed for the most part without Mae purchases and/or insurance. Krugman can be a brilliant Nobel-prize winning economist if he opts to be, but most of the time when he is casted as a NYT journalist, he has a NYT axe to grind. Serious economists across the spectrum are in agreement on Krugman's sharp-tongued yet monotonous and ultimately dull (and even dimwitted) elephant axe. He knows better. It's truly sad that people denigrate the prestige of Nobel-prize winners by writing like that. For the record, Chambo would never do such a thing.
P.P.S. Google "Wynn Rant on Housing" and listen for 45 seconds if you so desire. "We are doing it AGAIN." For the record, I agree.
P.P.P.S. And these longterm mortgage interest rates sure can't make any sense to you if you're predicting middle-class-mauling inflation, can they? That's should be an easy way to make a patient buck if you are a true believer.
Anyway, housing around Hegia is still significantly overvalued.
I'm not up to date at all on VZ or Hegia homes. I'm all ears though and I'm trying to subtly steer the conversation back on track.
chamby I think we agree on somethings (doing it again, deflation as a risk::rates, etc) disagree on other things (FNM/FRE as culprits). I think you can see why i'm not as sanguine as you on the housing issues being fixed, but yes.
To bring it back on topic - sort of interesting to see the difference in home prices between Spain and France in this part of the world.