So far, so good

Remember this challenge?

According to the “scientific” forecast, housing prices were to stabilize in late 2007 and hold firm in 2008. Here’s the November 2007 forecast for 2008: “Existing-home prices are expected to decline 1.7 percent to a median of $218,200 for all of this year and hold essentially even in 2008 at $218,300. Wow, what precision! To a tenth of a percent! The February report comes out this week… let’s just say that instead of $218k, I’m expecting a decline that would project to $175k or less by the end of the year. But what do I know, I’m not an “expert” paying close attention to the “science” of the housing market, after all.

From the February 2008 NAR report: “The national median existing-home price for all housing types was 195,900 U.S. dollars in February, down 8.2 percent from a year earlier when the median was 213,500 U.S. dollars.”

At this rate, we could get down to 175k before August.

The superiority of Ron Paul

The Lizard Queen on Alan Greenspan:

But he has a calming influence still to this day on Wall Street — don’t ask me why because I never understand what he’s saying — but nevertheless people respond to that Delphic oracle approach.

Hillary really is an idiot. Not because she doesn’t understand the first thing about economics – we already knew that – but because the correct thing to do when you don’t understand the very simple monetary policy that he is discussing is to laud his “masterful” performance in soothing the troubled waters of the markets.

Wall Street is not capitalist

Confirmation of what I wrote about in yesterday’s column, as if it was needed:

Adam Smith’s invisible hand has a puppeteer: the Federal Reserve. In case there is any confusion about who was pulling the strings behind the scenes of JPMorgan Chase’s acquisition of Bear Stearns, the curtain was lifted Monday. By raising its bid — with the grudging approval of the Fed — to $10 a share, from $2, JPMorgan exposed what had long been whispered about but no one dared to say aloud: the Fed is officially in the deal-making business.