Could Realtors economist Lawrence Yun please stop talking?

Updated

With the housing bubble that the National Association of Realtors spent years denying the existence of crashing down, the association's Chief Economist is now calling on Congress to prop it back up.

In a column titled We Need a "Jolt" Now, Yun essentially makes the case that interest rate cuts, tax incentives, and increased FHA lending are simply not enough to bring the real estate market back. The market share of FHA loans has soared from 2% in 2006 and is expected to top 30% in 2009. But no, the federal government needs to do more. Yun writes that "If we have a properly structured housing-focused stimulus plan, once it is enacted I suspect that home sales could increase 10 percent – perhaps even 20 percent – nationwide. That would immediately bring down inventory levels and thus stabilize home prices."

Of course a 20% sales increase would also pump cash into the coffers of the NAR's members, but no need to mention that. The important thing to remember when looking at Lawrence Yun's suggestions and predictions is that he has never been right. Watch this video if you don't believe me.

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