A great example of what happens when governments take over free markets. An excerpt:
Home sales up 7.4 percent in November as federal aid spurs sales. Home resales surged last month to the highest level in nearly three years, reflecting an extraordinary level of federal support that has pulled the housing market back from the worst downturn since the Great Depression.
But later in the article we get this:
Unemployment is high and employers are going to be slow to rehire because economic growth is weaker than expected. The economy grew at a pace of 2.2 percent in the third quarter, which was lower than the initial 2.8 percent reading, the government said Tuesday. What’s more, mortgage defaults are still setting records, and lenders are regularly rejecting applications from borrowers who don’t have good credit or enough money for a down payment.
How could anyone make a bet on housing with THESE fundamentals?