They’re in Another World
September 24, 2008
While the rest of the world understands that hyping up the housing market and pushing people into homes they couldn't afford had something to do with the current economic situation, denial continues unfazed at the National Association of Realtors.
This lobbying group, which has inserted more distortionary tax provisions in its favor than perhaps any other, continues to live in a world of make believe made fun of so brilliantly during the collapse of the housing bubble. This week their website was willing to concede that commercial real estate is "pinched" that residential real estate is seeing "turnarounds in sales." The group refuses to use month-to-month decline data (which masks an accelerating decline), and blames the decline they do admit on "overly tight lending criteria" (as opposed to loose lending rules being what got us into the mess in the first place). In this video that reminds me of Iraq's Information Minister denying that American troops were in Baghdad, NAR's President Dick Gaylord and Chief Economist Lawrence "Sunny Yunny" Yun predicting that the housing market will be back on track by 2009.
TV personality Glenn Beck recently highlighted some of ridiculously optimistic predictions made by officials at the National Association of Realtors:
Search the Tax Foundation website for "housing" to see some of our extensive commentary on the topic.