The Single Best Method to Stabilize Home Prices

Here’s a note to Obama:

The single best method to stabilize home prices—-

Do nothing:

(Reuters) – Single-family home prices dipped in July, and are seen stabilizing near the lows without the homebuyer tax credit that ended in April…

This is surprising.

When left alone, people will normally buy and sell things at some market level.  When you pay people $8k to buy a house, don’t be surprised when the price of houses fluctuates between $1 and $8,000.

Econ 101.

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