Quote from Financial Saint:
Great news! New home sales in March are up 103K from February which was the lowest month ever in the new home sales. Again most of these houses sold are $250K and under. Great number, looks like the economy is starting to grow and all the stimulus they had put in is working. The only problem I have with this is that if you put 0 money down to buy a house (no skin in the game) and if the home prices go down again in value who is to say that you will stay in your house and especially who is to say that the investors who are buying these houses with 0 money down are going to stay with these houses. I am just afraid that we might be creating another smaller bubble in the housing market, by allowing people to buy houses with 0 money down and keeping interest rates artificially low for a long time. It did not work for Greenspan, it did not work for Bernanke and I think it might not work for Bernanke again. I think that both of these guys have a PhDs in economics (that might be the problem).
