Or, mebbee not. Well, if there wasn't a real panic today, maybe there will be one tomorrow. Except.... if mortgage defaults are going to drive the economy to its knees, why didn't delinquencies jump in the first quarter? And why aren't home values in a much larger slump?
There is no denying that sales are way off, new starts are off and permits aren't improving but prices are only slipping very, very slightly on a national basis.
I may be missing something but this looks like a bottom to me. I have felt that the smash talk on home prices was a political counter to the "ownership society" for some time and I've wondered how the DEMSM would handle it through the '08 election. Fear is a good driver when the opposition controls both the Executive and the Legislative branches but shared responsibility has to cut into fear mongering.
Any bets on whether the Dems propose "save the flakes" credit legislation this fall? Moral hazard is meaningless to them, so they might make another run at it.