Two news stories convey the shift in the housing market that only recently became apparent:
Story One: “The housing rebound is broadening to other parts of the U.S. economy and will likely lend impetus to growth through 2013 and beyond.”
Story Two: “Hedge funds and private equity firms have been rushing in to buy up companies and assets in every part of the housing supply chain, including undeveloped land, homebuilders, foreclosed homes, and building parts manufacturers. One of the most notable moves is coming from hedge fund manager John Paulson, best known for his big (and lucrative) bets against subprime mortgages in 2006 and 2007.”
The last quote kind of causes more than a little unease. The same financiers who bet for and against the housing market last decade are still around, betting for and against the market, and still capable of too-big-to-fail screw ups. And we’re supposed to be happy?
But we’ll take it.
File under: Cognitive dissonance