Housing, like all things in the economy is cyclical. Home values will begin to
rise again eventually, just like they did back in the 80's. However, the bank
bailouts have stagnated the slow economy even further, making what would have
been a sharp (and albeit devastating) recession shorter, has now drawn it out.
Hopefully those who bought in a panic when they couldn't really afford it will
know better next time, as will those who were duped by
"to-good-to-be-true" interest rates.
Everything Buffett says about our "recovering" economy makes me suspect
he is the head "spin" director for the Obama campaign.
Housing will never recover so long as prices remain inflated above what the
average American can afford.Bailing out the banks created a
disconnect. Traditional rules of supply and demand were tossed out the window
and our economy won't recover until balance is reachieved.
he is dead wrong about obama. buffet's best days are way behind him.