Comments for House Prices Will Fall Because They Are Over-Valued at http://www.cepr.net , comment 1 to 2 out of 2 comments http://www.cepr.net Tue, 21 May 2013 13:47:11 +0100 FeedCreator 1.7.3 http://www.cepr.net/index.php/blogs/beat-the-press/house-prices-will-fall-because-they-are-over-valued#comment-1291 Why in the world would CA be using what precious little money it has to prop up housing prices?! The only reason I can think of is that the state collects more money in property taxes on houses with higher values. But that makes no sense either. I'm at a loss. - Queen of Sheba Sat, 03 Jul 2010 14:06:41 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/house-prices-will-fall-because-they-are-over-valued#comment-1284 So deflation is a bad thing that creates unemployment. Check. No wait, deflation is a good thing, but just for houses. Check. But deflation is also good for health care because otherwise it will bust the budget. Check. Stimulus spending that runs up the deficit and debt is good for the economy. Check. Free markets work and they're trying to work now and bring down house prices but the government won't let them and journalists think housing markets need more demand to keep prices up which is good for the economy. Check. Go back to step one. Deflation and recession is not a bad thing. Deflation increases the future value of monetary assets lent in the current period with the exception of homeowners, while recessions and unemployment are healthy self-correcting responses to excess government debt. Now tie everything back to this and the rest of it will make sense except stimulus spending. Check. - izzatzo Sat, 03 Jul 2010 04:21:47 +0100