Wednesday, August 25, 2010

Is the Housing Market to Blame for Our Continuing Recession?

In a word, no.  In a recent post, I discussed the real reasons for our continuing recession.  Yesterday's dismal report of the drop in sales of existing homes leads many to believe that "its the housing market, stupid."

But the WSJ article here explains why that really just isn't the case.  All the liberal rags and other mainstream media  that point toward the housing market are using a simple diversionary tactic.  It's the government, stupid, not the housing market.

The housing market will recover precisely when the federal government gets out of the business of fostering massive uncertainty.  Governments cause recessions; housing markets don't.  This is all old ground, of course.  You can read more about it here, and here and here if you haven't already.

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