Harvard University Economics Professor: House Prices to Fall Further
From Bloomberg: Harvard’s Feldstein Says U.S. Economy Still Mired in Recession
Restrained consumer spending suggests “2010 is going to be a very weak year,” said [Harvard University economics professor and former NBER president Martin Feldstein ] “Thrift in the long run is a very good thing, but increasing thrift as you come out of a recession is going to be a drag.”
Regarding the residential property market … Feldstein said the Obama administration’s effort to revive the housing market is a failure and home prices will continue to decline.
“It was just not well enough designed,” Feldstein said. “They ended up failing.” That suggests the housing slump will “continue to push down house prices,” he said.
And remember, there is no problem so bad that the Government can’t make it worse.
File Under: Debbie Downer