From The Motley Fool:
I’m sure others have noticed, as I have, the increasingly desperate pleas from the housing-bubble cheerleaders, especially National Association of Realtors Chief Economist David Lereah. A longtime bubble denier — who, I think, is more interested in protecting his constituency of six-percenters than in offering realistic housing-market commentary — Lereah began asking the Fed to protect his bubble a couple months back. At the same time, he and his associates have tried to spin the situation with the news media, who, hungry for soundbites, are usually all too happy to parrot headlines such as “Existing-Home Sales Down With Softening Prices.”
That’s the title of the latest “no reason for fear” release, which you can find here. You can see, especially in the remarks toward the bottom, the NAR’s devotion to trying to convince Americans that housing is a no-lose “investment.”
That doesn’t quite square with the soundbite available via a Bloomberg story on the numbers. There, Lereah reportedly said, “It’s very important that the Fed understand the fragile state of the housing market. It’s very important that the Fed maintain the status quo, keep rates where they are.”
Translation: “Pleeeez Gawwwd don’t take away their free money! Do that and we’re all sunk!”
If it’s disconcerting that the most prominent housing bulls are, when we’re not looking, begging for economic policies aimed at shoring up their crumbling story, then this might be much worse.
How about if the last shred of the housing bull story turned out to be — how do you say? Untrue?